Financial Statements and Closing Entries Outdoors, Inc. publishes magazines for skiers and hikers. The firm has...

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Financial Statements and Closing Entries Outdoors, Inc. publishes magazines for skiers and hikers. The firm has the following adjusted trial balance at December 31. OUTDOORS, INC. Adjusted Trial Balance December 31 Debit Credit Cash $7,020 Accounts Receivable 24,180 Supplies 5460 Prepaid insurance 1,209 Office Equipment 85.800 Accum Depr.-Equipment $16,900 Accounts Payable 15,730 Unearned Subscription Revenue 13,000 Salaries Payable 4.550 Common Stock 32.500 Retained Earnings 30,186 Subscription Revenue 244,790 Advertising Revenue 64,610 Salaries Expense 156.299 Printing and Malling Expense 111,280 Rent Expense 11,440 Supplies Expense 7,930 Insurance Expense 2418 Depreciation Expense 7.150 Income Tax Expense 2,000 Totals $422.266 $422.266 Required a. Prepare an income statement and a balance sheet as of December 31. b. Prepare closing entries directly to Retained Earnings in general journal form. Income Statement Balance Sheet Journal Entries NOTE: Do not use negative signs with answers, unless otherwise noted (such as accumulated depreciation). OUTDOORS, INC. Income Statement For Year Ended December 31 Revenue Subscription Revenue 0 Advertising Revenue 0 Total Revenue 0 Expenses Salaries Expense 0 Printing and Mailing Expense 0 Rent Expense 0 Supplies Expense 0 Insurance Expense 0 Depreciation Expense 0 Income Tax Expense 0 Total Expenses 0 Net Income Required a. Prepare an income statement and a balance sheet as of December 31. b. Prepare closing entries directly to Retained Earnings in general journal form. Income Statement Balance Sheet Journal Entries OUTDOORS, INC. Balance Sheet December 31 Assets Cash Liabilities 0 Accounts Payable $ 0 Accounts Receivable Supplies Prepaid Insurance 0 Unearned Subscription Revenue 0 0 Salaries Payable 0 0 Total Liabilities 0 Office Equipment 0 Less: Accum, Depr.- Equipment (enter as a negative) 0 0 Stockholders' Equity Common Stock Total Assets Retained Earnings Total Stockholders' Equity 0 Total Liabilities and Stockholders' Equity $ 0 0 0 0 Required a. Prepare an income statement and a balance sheet as of December 31. b. Prepare closing entries directly to Retained Earnings in general journal form. Income Statement Balance Sheet Journal Entries General Journal Date Description Debit Credit Dec 31 $ 0 $ 0 Advertising Revenue 0 0 = 0 0 31 To close the Revenue account. Salaries Expense 0 0 0 Printing and Mailing Expense 0 Rent Expense 0 ooo. 0 0 Supplies Expense 0 0 Insurance Expense 0 0 Depreciation Expense 0 0 Income Tax Expense 0 0 To close the expense accounts. Financial Statements and Closing Entries Outdoors, Inc. publishes magazines for skiers and hikers. The firm has the following adjusted trial balance at December 31. OUTDOORS, INC. Adjusted Trial Balance December 31 Debit Credit Cash $7,020 Accounts Receivable 24,180 Supplies 5460 Prepaid insurance 1,209 Office Equipment 85.800 Accum Depr.-Equipment $16,900 Accounts Payable 15,730 Unearned Subscription Revenue 13,000 Salaries Payable 4.550 Common Stock 32.500 Retained Earnings 30,186 Subscription Revenue 244,790 Advertising Revenue 64,610 Salaries Expense 156.299 Printing and Malling Expense 111,280 Rent Expense 11,440 Supplies Expense 7,930 Insurance Expense 2418 Depreciation Expense 7.150 Income Tax Expense 2,000 Totals $422.266 $422.266 Required a. Prepare an income statement and a balance sheet as of December 31. b. Prepare closing entries directly to Retained Earnings in general journal form. Income Statement Balance Sheet Journal Entries NOTE: Do not use negative signs with answers, unless otherwise noted (such as accumulated depreciation). OUTDOORS, INC. Income Statement For Year Ended December 31 Revenue Subscription Revenue 0 Advertising Revenue 0 Total Revenue 0 Expenses Salaries Expense 0 Printing and Mailing Expense 0 Rent Expense 0 Supplies Expense 0 Insurance Expense 0 Depreciation Expense 0 Income Tax Expense 0 Total Expenses 0 Net Income Required a. Prepare an income statement and a balance sheet as of December 31. b. Prepare closing entries directly to Retained Earnings in general journal form. Income Statement Balance Sheet Journal Entries OUTDOORS, INC. Balance Sheet December 31 Assets Cash Liabilities 0 Accounts Payable $ 0 Accounts Receivable Supplies Prepaid Insurance 0 Unearned Subscription Revenue 0 0 Salaries Payable 0 0 Total Liabilities 0 Office Equipment 0 Less: Accum, Depr.- Equipment (enter as a negative) 0 0 Stockholders' Equity Common Stock Total Assets Retained Earnings Total Stockholders' Equity 0 Total Liabilities and Stockholders' Equity $ 0 0 0 0 Required a. Prepare an income statement and a balance sheet as of December 31. b. Prepare closing entries directly to Retained Earnings in general journal form. Income Statement Balance Sheet Journal Entries General Journal Date Description Debit Credit Dec 31 $ 0 $ 0 Advertising Revenue 0 0 = 0 0 31 To close the Revenue account. Salaries Expense 0 0 0 Printing and Mailing Expense 0 Rent Expense 0 ooo. 0 0 Supplies Expense 0 0 Insurance Expense 0 0 Depreciation Expense 0 0 Income Tax Expense 0 0 To close the expense accounts.

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