ACCT1036

OPTIONAL ASSIGNMENT

Prepare financial statements, closing entries, and post-closing trial balance.

The adjusted trial balance for Marine Fishing Centre is as follows:

MARINE FISHING CENTRE Adjusted Trial Balance March 31, 2017
	Debit	Credit
Cash	$ 7,720
Interest receivable	750
Supplies	1,425
Debt investments	30,000
Land	46,800
Building	186,900
Accumulated depreciationbuilding		$ 31,150
Equipment	36,200
Accumulated depreciationequipment		18,100
Accounts payable		5,875
Interest payable		990
Unearned revenue		2,190
Notes payable ($6,000 must be paid in 2018)		66,000
R. Falkner, capital		165,300
R. Falkner, drawings	46,200
Service revenue		124,300
Interest revenue		1,500
Depreciation expense	9,850
Interest expense	3,960
Insurance expense	4,500
Salaries expense	30,000
Supplies expense	5,700
Utilities expense	5,400
	$415,405	$415,405

Instructions

(a)

Prepare an income statement for the year ended March 31, 2017.

(b)

Prepare a statement of owner's equity. The owner, Rachael Falkner, invested $2,300 cash in the business during the year. (Note: The investment has been recorded and it is included in the capital account.)

(c)

Prepare a classified balance sheet.

(d)

Prepare closing entries.

(e)

Use T accounts to post the closing entries and calculate the balance in each account. (Ignore the accounts not affected by the closing entries.)

(f)

Prepare a post-closing trial balance and compare the balance in the R. Falkner, Capital account with the information in the statement of owner's equity.