Reference no: EM132741424

1) The mortgage payable has a 5% interest rate. Interest is paid on the first day of August for the previous 12 month's interest.
2) On December 31, 2020, half of the unearned revenue was still unearned.
3) A physical count of supplies shows $790 on hand on December 31, 2020.
4) The building has an estimated useful life of 40 years.
5) The equipment has an estimated useful life of twelve years.
6) Service revenue earned but not recorded at December 31, 2020, was $8,700.
7) Salaries of $4,400 have been incurred but are unpaid at December 31, 2020. Payday will be on January 4, 2021.
8) During the next fiscal year, $18,400 of the mortgage payable is to be repaid.
9) The 12-month insurance policy was purchased for $5,040 cash on February 1, 2020.

Problem 1: Adjusting Journal Entries

Problem 2: Adjusted Trial Balance, Income Statement, Statement of Owner's Equity, Classified Balance Sheet

The owner, Jane Bosman, invested $4,000 cash in the business on November 21, 2020. The investment has been recorded and it is included in the capital account.

Problem 3: Closing Journal Entries

Problem 4: Post-Closing Trial Balance Prepare the company's post-closing trial balance. Be sure to use proper titles and formatting.