Steven Tax Service, Inc.'s trial balance at the end of its second year of operation is as

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Steven Tax Service, Inc.'s trial balance at the end of its second year of operation is as follows

Steven Tax Service, Inc.'s trial balance at the end of

The following information is also available:
a. Office supplies on hand, December 31, 2014, $227
b. Insurance still unexpired, $120
c. Estimated depreciation of office equipment, $770
d. Telephone expense for December, $19; the bill was received but not recorded.
e. The services for all unearned tax fees had been performed by the end of the year.
f. Estimated federal income taxes for the year, $2,160
Required
1. Open T accounts for the accounts in the trial balance plus the following: Income Taxes Payable; Office Supplies Expense; Insurance Expense; Depreciation Expense-Office Equipment; and Income Taxes Expense. Record the balances shown in the trial balance.
2. Determine the adjusting entries and post them directly to the T accounts.
3. Prepare an adjusted trial balance, an income statement, a statement of Retained Earnings, and a balance sheet.

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Financial and Managerial Accounting

ISBN: 978-1133940593

10th edition

Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson

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