Rockford Management Services Inc. began business on January 1, 2011, 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 INC. Worksheet For the Year Ended December 31, 2011 Adjusted Trial Balance Trial Balance Account Titles Dr 13,800 28.300 3,600 67,000 127,000 13.800 Accounts Receivable Prepaid Insurance 2,400 67,000 127.000 59,000 Building Equipment Accounts Payable Unearned Rent Revenue Mortgage Note Payable Common Stock Retained Earnings Dividends Service Revenue Rent Revenue Salaries Expense Advertising Expense Utilities Expense 12,500 6,000 120,000 100,000 44,000 12,500 120,000 100,000 90,700 29,000 33,000 42,000 20,500 19,000 20.500 19,000 Totals 402,200 402,200 Insurance Expense Depreciation Expense-Building Accumulated Depreciation-Building Depreciation Expense-Equipment Accumulated Depreciation-Equipment Interest Expense Interest Payable 1200 3.000 4.700 11,000 4,700 11.000 420,900 420.900 Totals