Julio Theater Company€™s trial balance at the end of its current fiscal year follows.

Required
1. Enter Julio Theater€™s trial balance amounts in the Trial Balance columns of a work sheet and complete the work sheet using the following information:
a. Expired insurance, $34,800.
b. Inventory of unused office supplies, $488.
c. Inventory of unused cleaning supplies, $936.
d. Estimated depreciation on the building, $28,000.
e. Estimated depreciation on the theater furnishings, $72,000.
f. Estimated depreciation on the office equipment, $6,320.
g. The company credits all gift books sold during the year to the Gift Books Liability account. A gift book is a booklet of ticket coupons that is purchased in advance as a gift. The recipient redeems the coupons at some point in the future. On June 30 it was estimated that $75,600 worth of the gift books had been redeemed.h. Accrued but unpaid usher wages at the end of the accounting period, $1,720.
2. Prepare an income statement, a statement of owner€™s equity, and a balance sheet. Assume no additional investments by the owner, P. Julio.
3. Prepare adjusting, closing, and, when necessary, reversing entries from the work sheet.
4. Can the work sheet be used as a substitute for the financial statements? Explain youranswer.

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Julio Theater Company Trial Balance June 30, 2014 Cash Accounts Receivable Prepaid Insurance Office Supplies Cleaning Supplies Land Building Accumulated Depreciation-Building Theater Furnishings Accumulated Depreciation-Theater Furnishings Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Gift Books Liability Mortgage Payable P Julio, Capital P. Julio, Withdrawals Ticket Sales Revenue Theater Rental Revenue Usher Wages Expense Office Wages Expense Utilities Expense Interest Expense 63,600 37,088 39,200 1,560 7,180 40,000 800,000 78,800 740,000 130,000 63,200 31,120 91,012 83,800 600,000 625,296 120,000 822,800 90,400 314,000 48,000 225 400 54,000 2,553,228 2,553,228