Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share
Question:
Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement
Including Earnings per ShareTunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31:
Data not yet recorded at December 31 included:
a. The supplies count on December 31 reflected $300 in remaining supplies on hand to be used in the next year.
b. Insurance expired during the current year, $800.
c. Depreciation expense for the current year, $3,700.
d. Wages earned by employees not yet paid on December 3, $640.
e. Income tax expense, $5,540.
Required:
1. Record the adjusting entries.
2. Prepare an income statement and a classified balance sheet that include the effects of the preceding five transactions.
3. Record the closing entry.
Financial Statement Analysis
ISBN: 978-0078110962
11th edition
Authors: K. R. Subramanyam, John Wild