Rockford Management Services began business on January 1, 2010, with a capital investment of $120,000.The company manages condominiums for owners (Service Revenue) and rents space in its own office building (Rent Revenue). The trial balance and adjusted trial balance columns of the worksheet at the end of the first year are as follows.

Instructions(a) Prepare a complete worksheet.(b) Prepare a classified balance sheet. (Note: $20,000 of the mortgage note payable is due for payment next year.)(c) Journalize the adjusting entries.(d) Journalize the closing entries.(e) Prepare a post-closing trialbalance.

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ROCKFORD MANAGEMENT SERVICES Worksheet For the Year Ended December 31, 2010 Adjusted Trial Balance Trial Balance Dr. Account Titles Dr. Сг. Cr. Cash 13,800 28.300 3.600 13.800 Accounts Receivable 28.300 Prepaid Insurance 2.400 Land 67,000 127,000 67.000 Building Equipment Accounts Payable 127,000 59.000 59.000 12,500 12,500 Unearned Rent Revenue 6,000 2,000 Mortgage Note Payable R. Neillsen. Capital R. Neillsen. Drawing 120,000 120,000 144,000 144,000 22,000 22.000 90,700 90,700 33,000 Service Revenue Rent Revenue 29.000 42,000 Salaries Expense Advertising Expense Utilities Expense 42,000 20.500 20.500 19,000 19.000 Totals 402.200 402,200 Insurance Expense Depreciation Expense-Building Accumulated Depreciation-Building Depreciation Expense-Equipment 1.200 3.000 3,000 4.700 4.700 Accumulated Depreciation-Equipment Interest Expense Interest Payable 11.000 11.000 Totals 420,900 420,900