Rusthe Management Services began business on January 1, 2020, with a capital investment of $120,000. The company
Question:
Instructions
a. Prepare a complete worksheet.
b. Prepare a classified balance sheet. (Note: $45,000 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 trial balance.
Rusthe Management Services Worksheet For the Year Ended December 31, 2020 Adjusted Trial Balance Dr. Trial Balance Dr. Cr. Cr. Account Titles Cash 13,800 28,300 13,800 Accounts Receivable 28,300 Prepaid Insurance Land Buildings 3,600 67,000 2,100 67,000 127,000 127,000 Adjusted Trial Balance Trial Balance Account Titles Dr. Cr. Dr. Cr. Equipment Accounts Payable 59,000 59,000 12,500 12,500 Unearned Rent Revenue 6,000 120,000 1,000 120,000 Mortgage Payable Owner's Capital Owner's Drawings 144,000 144,000 22,000 22,000 Service Revenue 90,700 90,700 Rent Revenue 29,000 34,000 Salaries and Wages Expense Advertising Expense Utilities Expense 42,000 42,000 20,500 20,500 19,000 19,000 Totals 402,200 402,200 Insurance Expense Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Interest Expense Interest Payable 1,500 6,600 3,000 3,600 10,000 10,000 Totals 418,800 418,800
Step by Step Answer:
a RUSTHE MANAGEMENT SERVICES Worksheet For the Year Ended December 31 2020 Account Titles Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr ...View the full answer
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Related Video
A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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