Marsteller Properties Inc. owns apartments that it rents to university students. At December 31, 2011, the following
Question:
The following information is available for adjusting entries:
a. An analysis of apartment rental contracts indicates that $3,800 of apartment rent is unbilled and unrecorded at year-end.
b. A physical count of supplies reveals that $1,400 of supplies are on hand at December 31, 2011.
c. Annual depreciation on the buildings is $204,250
d. An examination of insurance policies indicates that $12,000 of the prepaid insurance applies to coverage for 2011.
e. Six months€™ interest at 9 percent is unrecorded and unpaid on the notes payable.
f. Wages in the amount of $6,100 are unpaid and unrecorded at December 31.
g. Utilities costs of $300 are unrecorded and unpaid at December 31.
h. Income taxes of $5,738 are unrecorded and unpaid at December 31.
Required:
1. Prepare a worksheet for Marsteller Properties.
2. Prepare an income statement, a retained earnings statement, and a classified balance sheet for Marsteller Properties.
3. Prepare the closing entries.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen