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   Integrative Exercise 01 The Accounting Cycle

   Begin with the following account balances for University Street Parking Garage (assume all accounts have normal balances) at December 31, 2019:

   Accounts payable	$16,700
   Accounts receivable	39,200
   Accumulated depreciation (equipment)	36,800
   Cash	6,700
   Common stock (20,000 shares)	100,000
   Depreciation expense (equipment)	12,300
   Dividends	6,300
   Equipment	269,500
   Income taxes expense	2,700
   Income taxes payable	1,100
   Interest expense	16,500
   Interest payable	0
   Interest income	4,100
   Inventory	4,900
   Investments	35,000
   Notes payable (due May 2, 2025)	160,000
   Prepaid rent (4 months)	36,400
   Rent expense	94,400
   Retained earnings, 12/31/2018	43,000
   Service revenue, parking	224,600
   Service revenue, repair	208,100
   Supplies expense	36,900
   Wages expense	233,600
   Wages payable	0

   Required:

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   1. For the following transactions, provide the necessary adjusting entries and update the account balances to appropriately reflect these adjusting entries:

   a. University Street Parking rents space that requires a rental payment of $9,100 per month. University Street Parking has prepaid rent through March 31, 2020.

   b. At December 31, 2019, University Street Parking owes employees wages of $12,500.

   c. University Street Parking should have total depreciation expense on equipment for 2019 of $14,300.

   d. The note payable of $160,000 has an interest rate of 6.75%. University Street Parking has paid interest through October 31, 2019.

   a.	CashPrepaid RentRent ExpenseRent PayableRent RevenueRent Expense	Rent Expense
   	CashPrepaid RentRent ExpenseRent PayableRent RevenuePrepaid Rent		Prepaid Rent
   	(Adjust rent)
   b.	CashPrepaid WagesWages ExpenseWages PayableWages ReceivableWages Expense	Wages Expense
   	CashPrepaid WagesWages ExpenseWages PayableWages ReceivableWages Payable		Wages Payable
   	(Adjust wages)
   c.	Accumulated Depreciation (equipment)CashDepreciation ExpenseDepreciation PayableEquipmentDepreciation Expense	Depreciation Expense
   	Accumulated Depreciation (equipment)CashDepreciation ExpenseDepreciation PayableEquipmentAccumulated Depreciation (equipment)		Accumulated Depreciation (equipment)
   	(Record depreciation)
   d.	CashInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInterest Expense	Interest Expense
   	CashInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInterest Payable		Interest Payable
   	(Record interest)

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   2. Prepare a properly classified income statement for 2019 using the post-adjustment account balances.

   University Street Parking Garage Income Statement For the Year Ended December 31, 2019

   CashDividendsInterest expenseInterest revenueService revenue, parkingService revenue, parking	$Service revenue, parking
   Accounts receivableAccounts payableEquipmentRetained earningsService revenue, repairService revenue, repair	Service revenue, repair
   Total revenue		$fill in the blank b98af708e01a07d_5
   Operating expenses:
   InventoryInvestmentsService revenue, repairWages expenseWages payableWages expense	$Wages expense
   Accounts PayableCommon stockPrepaid rentRent expenseRetained earningsRent expense	Rent expense
   Common stockNotes payableRetained earningsService revenue, parkingSupplies expenseSupplies expense	Supplies expense
   Accumulated depreciation (equipment)Depreciation expense (equipment)EquipmentInventoryInvestmentsDepreciation expense (equipment)	Depreciation expense (equipment)
   Total operating expenses		fill in the blank b98af708e01a07d_14
   Loss before income taxesLoss from operationsIncome before income taxesIncome from operationsNet incomeNet lossIncome from operations		$Income from operations
   Other income (expense):
   CashDividendsInterest incomeRetained earningsService revenue, parkingInterest income	$Interest income
   Accounts payableInventoryInvestmentsInterest expenseInterest payableInterest expense	Interest expense
   Total other income (expense)		fill in the blank b98af708e01a07d_21
   Loss before income taxesLoss from operationsIncome before income taxesIncome from operationsNet incomeNet lossIncome before income taxes		$Income before income taxes
   Common stockDividendsIncome tax expenseIncome tax payableRetained earningsIncome tax expense		Income tax expense
   Loss before income taxesLoss from operationsIncome before income taxesIncome from operationsNet incomeNet lossNet income		$Net income

   Question Content Area

   Prepare a properly classified retained earnings statement for 2019 using the post-adjustment account balances.

   University Street Parking Garage Retained Earnings Statement For the Year Ended December 31, 2019

   CashCommon stockNet incomeRetained earnings, January 1, 2019Retained earnings, December 31, 2019Retained earnings, January 1, 2019	$Retained earnings, January 1, 2019
   Add: CashAdd: Common stockAdd: DividendsAdd: InvestmentsAdd: Net incomeAdd: Net income	Add: Net income
   Less: CashLess: Common stockLess: DividendsLess: EquipmentLess: InventoryLess: Dividends	Less: Dividends
   CashCommon stockNet incomeRetained earnings, January 1, 2019Retained earnings, December 31, 2019Retained earnings, December 31, 2019	$Retained earnings, December 31, 2019

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   Prepare a properly classified balance sheet as of December 31, 2019 using the post-adjustment account balances.

   University Street Parking Garage Balance Sheet December 31, 2019

   Assets
   Current assets:
   CashDividendsEquipmentInterest revenueNotes payableService revenue, repairCash	$Cash
   Accounts payableAccounts receivableCommon stockDepreciation expense (equipment)InvestmentsSupplies expenseAccounts receivable	Accounts receivable
   Interest expenseInventoryNet incomeRent expenseService revenue, repairWages payableInventory	Inventory
   DividendsEquipmentInterest payablePrepaid rentRent expenseRetained earningsPrepaid rent	Prepaid rent
   Total current assets		$fill in the blank 3631400a801600e_9
   Accounts payableAccounts receivableCashDividendsInventoryInvestmentsInvestments		Investments
   Common stockDepreciation expense (equipment)EquipmentInterest revenueService revenue, parkingEquipment	$Equipment
   Less: Accounts receivableLess: Accumulated depreciationLess: Depreciation expenseLess: InventoryLess: Notes payableLess: Supplies expenseLess: Accumulated depreciation	Less: Accumulated depreciation
   Accumulated depreciation (equipment)Equipment (net)Interest expense (net)Retained earnings (net)Service revenue, repair (net)Service revenue, parking (net)Accumulated depreciation (equipment)		Accumulated depreciation (equipment)
   Total assets			$fill in the blank 3631400a801600e_18
   Liabilities and Stockholders' Equity
   Current liabilities:
   Accounts payableAccounts receivableCashDividendsInterest revenueInvestmentsAccounts payable	$Accounts payable
   CashCommon stockInventorySupplies expenseWages expenseWages payableWages payable	Wages payable
   DividendsEquipmentIncome taxes expenseInterest expenseInterest payableInvestmentsInterest payable	Interest payable
   Income taxes payableInterest revenueInventoryPrepaid rentService revenue, parkingSupplies expenseIncome taxes payable	Income taxes payable
   Total current liabilities		$fill in the blank 3631400a801600e_27
   Long-term liabilities:
   CashCommon stockDividendsEquipmentNotes payablePrepaid rentNotes payable		Notes payable
   Total liabilities			$fill in the blank 3631400a801600e_30
   Stockholders' equity:
   CashCommon stockDepreciation expense (equipment)EquipmentInvestmentsNotes payable		$- Select -
   Accumulated depreciation (equipment)CashDividendsInvestmentsRetained earningsService revenue, repair		- Select -
   Total stockholders' equity			fill in the blank 3631400a801600e_35
   Total liabilities and stockholders' equity			$fill in the blank 3631400a801600e_36