Refer to Problem 23 and complete the following steps: 1. Prepare an adjusted trial balance. 2. Prepare

Question:

Refer to Problem 2–3 and complete the following steps:

1. Prepare an adjusted trial balance.

2. Prepare an income statement and a statement of shareholders' equity for the year ended December 31, 2011, and a classified balance sheet as of December 31, 2011. Assume that no common stock was issued during the year and that $4,000 in cash dividends were paid to shareholders during the year.

3. Prepare closing entries and post to the accounts.

4. Prepare a post-closing trial balance.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
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...