ESSAY. Write your answer in the space provided or on a separate sheet of paper.

1) Given the following adjusted account balances in random order, prepare the closing entries for ABC Company on December 31, 2019.

Cash 35,000

Owner, Capital 85,000

Accounts payable 33,000

Service revenue 84,000

Amortization expense-building 12,000

Salary expense 29,000

Unearned service revenue 24,000

Prepaid rent 9,000

Supplies expense 6,000

Note payable 71,000

Land 65,000

Accounts receivable 32,000

Accum. amortization-building 12,000

Interest revenue 14,000

Interest payable 3,000

Owners, Withdrawals 20,000

Rent expense 15,000

Building 95,000

Supplies 4,000

Interest expense 4,000

2) Using the following worksheet for ABC Company, prepare an Income Statement, Statement of Owners Equity and Balance Sheet.

ABC Company

Worksheet

December 31, 2019

Unadjusted Adjusted Income Balance

Trial Balance Adjustments Trial Balance Statement Sheet

	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	1,700				1,700				1,700
Accounts Receiv.	8,500		2,000		10,500				10,500
Supplies	100			80	20				20
Equipment	7,500				7,500				7,500
Accum. Amort.		2,000		240		2,240				2,240
Accounts Payable		1,200				1,200				1,200
Salary Payable		800		180		980				980
Unearned Revenue		600				600				600
Owner Capital		3,400				3,400				3,400
Owner Withdraw.	2,300				2,300				2,300
Service Revenue		40,000		2,000		42,000		42,000
Salary Expense	24,000		180		24,180		24,180
Supplies Expense	2,300		80		2,380		2,380
Amort. Expense	1,600		240		1,840		1,840
Total	48,000	48,000	2,500	2,500	50,420	50,420	28,400	42,000	22,020	8,420
Net income/(loss)							13,600			13,600
Total							42,000	42,000	22,020	22,020