Beauchamp Theater Corporation’s trial balance at the end of its current fiscal year appears is given below:

1. Enter Beauchamp Theater Corporation’s trial balance amounts in the Trial Balance columns of a work sheet and complete the work sheet using the following information: 

a. Expired insurance, $17,400. 

b. Inventory of unused office supplies, $244. 

c. Inventory of unused cleaning supplies, $468. 

d. Estimated depreciation on the building, $14,000. 

e. Estimated depreciation on the theater furnishings, $36,000. f. Estimated depreciation on the office equipment, $3,160. 

g. The company credits all gift books sold during the year to the Gift Books Liability account. A gift book is a booklet of ticket coupons that is purchased in advance as a gift. The recipient redeems the coupons at some point in the future. On June 30 it was estimated that $37,800 worth of the gift books had been redeemed. 

h. Accrued but unpaid usher wages at the end of the accounting period, $860. 

i. Estimated federal income taxes, $20,000. 

2. Prepare an income statement, a statement of retained earnings, and a balance sheet. 

3. Prepare adjusting and closing entries.

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Beauchamp Theater Corporation Trial Balance June 30, 2010 $ 31,800 Cash Accounts Receivable 18,544 Prepaid Insurance 19,600 Office Supplies Cleaning Supplies 780 3,590 Land 20,000 Building Accumulated Depreciation-Building 400,000 39,400 Theater Furnishings 370,000 Accumulated Depreciation-Theater Furnishings Office Equipment 65,000 31,600 Accumulated Depreciation-Office Equipment 15,560 Accounts Payable Gift Books Liability Mortgage Payable 45,506 41,900 300,000 Common Stock 200,000 Retained Earnings 112,648 Dividends 60,000 Ticket Sales Revenue 411,400 Theater Rental Revenue 45,200 Usher Wages Expense Office Wages Expense Utilities Expense 157,000 24,000 112,700 Interest Expense 27,000 $1,276,614 $1,276,614