Santo Company's adjusted trial balance on December 31, 2017, follows. Required 1. Prepare an income statement and

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Santo Company's adjusted trial balance on December 31, 2017, follows.
Santo Company's adjusted trial balance on December 31, 2017, follows.
Required
1.

Required
1. Prepare an income statement and a statement of owner's equity for the year 2017, and a classified balance sheet at December 31, 2017. There are no owner investments in 2017.
2. Enter the adjusted trial balance in the first two columns of a six-column table. Use the middle two columns for closing entry information and the last two columns for a post-closing trial balance. Insert an Income Summary account (No. 901) as the last item in the trial balance.
3. Enter closing entry information in the six-column table and prepare journal entries for it.
4. Assume for this part only that
a. None of the $600 insurance expense had expired during the year. Instead, assume it is a prepayment of the next period's insurance protection.
b. There are no earned and unpaid wages at the end of the year. Reverse the $2,700 wages payable accrual. Describe the financial statement changes that would result from these two assumptions.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Fundamental Accounting Principles

ISBN: 978-1259536359

23rd edition

Authors: John Wild, Ken Shaw, Barbara Chiappett

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