Marsteller Properties Inc. owns apartments that it rents to university students. At December 31, 2011, the following unadjusted account balances were available:
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.
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.

  • CreatedSeptember 22, 2015
  • Files Included
Post your question