Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted trial balance as of December 31, 2012, appears below. December 31 is the company's fiscal year-end.

Information necessary to prepare the year-end adjusting entries appears below.
Required:
Complete the following steps:
1. Enter the unadjusted balances from the trial balance into T-accounts.
2. Post the adjusting entries prepared in P3-4A to the accounts.
3. Prepare an adjusted trial balance.
4. Prepare an income statement and a statement of shareholders' equity for the year ended December 31, 2012, and a classified balance sheet as of December 31, 2012.
Assume that no common stock is issued during the year.
5. Record closing entries.
6. Post closing entries to the accounts.
7. Prepare a post-closing trial balance.

Transcribed Image Text:

Accounts Debits Credits $ 9,300 8,500 1,500 6,000 75,000 Cash Accounts Receivable Supplies Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Salaries Payable Interest Payable Utilities Payable Notes Payable Common Stock Retained Earnings Service Revenue Salaries Expense Interest Expense Rent Expense Supplies Expense Utilities Expense Depreciation Expense 10,000 6,700 15,000 35,000 14,000 45,000 23,500 ,900 Totals $125,700 $125.700