The accounting records for Beta Company contained the following balances as of December 31, 2008, as shown on the year-end balance sheet:

Additional information follows:
• Salaries that had been earned by the sales staff but not yet paid amounted to $2,300.
• Supplies on hand at the end of the period totaled $200.
• The beginning balance of $3,600 in prepaid rent was completely used up by the end of the year.

Requirements
1. Set up an accounting equation worksheet and record the account balances as of December 31, 2008.
2. Record the transactions that occurred during 2009 and the necessary adjustments at year end.
3. Prepare the income statement, statement of changes in shareholders’ equity, and statement of cash flows for the year ended December 31, 2009, and the balance sheet at December 31,2009.

Transcribed Image Text:

Beta Company Balance Sheet At December 31, 2008 Assets Liabilities and Shareholders' Equity Accounts payable Common stock Cash. $50,000 Accounts receivable.... 26,500 aid rent...10,00 $17,500 Land Totals .3,600 10,500 . $90,600 48,600 Retained earnings24,500 ..