The completed financial statement columns of the worksheet for Woods Company are shown below.

Instructions

(a) Prepare an income statement, owner's equity statement, and a classified balance sheet. S. Woods made an additional investment in the business of $4,000 during 2008.

(b) Prepare the closing entries.

(c) Post the closing entries and rule and balance the accounts. Use T accounts. Income Summary is account No. 350.

(d) Prepare a post-closing trial balance.

Transcribed Image Text:

WOODS COMPANY Worksheet For the Year Ended December 31, 2008 Income Statement Balance Sheet Account No. Account Titles Dr. Cr. Dr. Cr. 101 Cash 8,200 112 Accounts Receivable 7,500 130 Prepaid Insurance 1,800 157 167 201 Equipment Accumulated Depreciation Accounts Payable 28,000 8,600 11,700 212 Salaries Payable 3,000 301 S. Woods, Capital 34,000 306 S. Woods, Drawing 7,200 400 Service Revenue 44,000 622 Repair Expense 5,400 711 Depreciation Expense 2,800 722 Insurance Expense 1,200 726 Salaries Expense 35,200 732 Utilities Expense 4,000 Totals 48,600 44,000 52,700 57,300 Net Loss 4,600 4,600 48,600 48,600 57,300 57,300