The unadjusted trial balance of Fugazy Investment Advisers at December 31, 2016, follows: E (Click the...

 

 

 

Transcribed Image Text:

The unadjusted trial balance of Fugazy Investment Advisers at December 31, 2016, follows: E (Click the icon to view the unadjusted trial balance.) Adjustment data at December 31, 2016: 6 (Click the icon to view the adjustments.) Requirements 1. Prepare a worksheet for Fugazy Investment Advisers at December 31, 2016. 2. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in account format. Assume that there were no contributions made by the owner during the year. 3. Prepare closing entries. suaunsninw ALn INIM Buuhan auun p 1P UOnnas auO JAAISVIOM An alaiduuon naausvIOM ALn In SUuunion anUPIPa IPIN ALn ULDok JOL najauA uaan AAPU sanUPIPO nasnineun au section. Enter the adjustments along with the adjustment letter references-(a), (b). (c), etc.-into the columns as appropriate. In the following step, complete the Adjusted Trial Balance, Lastly, complete the worksheet by preparing the Income Statement and Balance Sheet columns. Be sure to calculate the total debits and credits in each step. A (Click the icon to view the abbreviations used.) Fugazy Investment Advisers Worksheet December 31, 2016 Unadjusted Adjusted Income Balance Trial Balance Adjustments Trial Balance Statement Sheet Acct. Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 30,000 A/R 50,000 8,000 26,000 Office Supp. Equipment 13,000 17,000 A/D-Equip. A/P Salaries Pay. 4,000 15,000 42,000 Unearn. Rev. N/P (Vt) Fugazy, Cap. Fugazy, W/D 28,000 Service Rev. 99,000 Ins. Exp. 4,000 Salaries Exp. 31,000 Supplies Exp. 6,000 7,000 Interest Exp. Rent Exp. Depr. Exp. 190,000 190,000 Total Net income or loss Requirement 2. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in account format. Assume that there were no contributions made by the owner during the year. Begin by preparing the income statement. Review the Income Statement columns of the worksheet completed in Requirement 1. Fugazy Investment Advisers Income Statement Year Ended December 31, 2016 Net Income (Loss) Prepare the statement of owner's equity. Assume that there were no contributions made by the owner during the year. Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. (Use a minus sign or parentheses to show a decrease in capital. Exclude any zero-balance events for the period from the statement of owner's equity.) Review the Balance Sheet columns of the worksheet completed in Requirement 1. Fugazy Investment Advisers Statement of Owner's Equity Year Ended December 31, 2016 Fugazy, Capital, January 1, 2016 Fugazy, Capital, December 31, 2016 Prepare the classified balance sheet in account format on December 31, 2016. (If a box is not used in the balance sheet, leave the box empty; do not select a label or enter a zero. Abbreviations used: Depr.= Depreciation; Equip.=Equipment.) Review the Balance Sheet columns of the worksheet completed in Requirement 1. Review the Statement of Owner's Equity completed above. Fugazy Investment Advisers Balance Sheet December 31, 2016 Assets Liabilities Less: Owner's Equity Requirement 3. Prepare closing entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Start by closing revenues. Review the Income Statement columns of the worksheet completed in Requirement 1. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (1) Close expenses for the period. Review the Income Statement columns of the worksheet completed in Requirement 1. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (2) Close Income Summary. Review the Income Statement columns of the worksheet completed in Requirement 1. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (3) Close withdrawals. Review the Balance Sheet columns of the worksheet completed in Requirement 1. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (4) The unadjusted trial balance of Fugazy Investment Advisers at December 31, 2016, follows: E (Click the icon to view the unadjusted trial balance.) Adjustment data at December 31, 2016: 6 (Click the icon to view the adjustments.) Requirements 1. Prepare a worksheet for Fugazy Investment Advisers at December 31, 2016. 2. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in account format. Assume that there were no contributions made by the owner during the year. 3. Prepare closing entries. suaunsninw ALn INIM Buuhan auun p 1P UOnnas auO JAAISVIOM An alaiduuon naausvIOM ALn In SUuunion anUPIPa IPIN ALn ULDok JOL najauA uaan AAPU sanUPIPO nasnineun au section. Enter the adjustments along with the adjustment letter references-(a), (b). (c), etc.-into the columns as appropriate. In the following step, complete the Adjusted Trial Balance, Lastly, complete the worksheet by preparing the Income Statement and Balance Sheet columns. Be sure to calculate the total debits and credits in each step. A (Click the icon to view the abbreviations used.) Fugazy Investment Advisers Worksheet December 31, 2016 Unadjusted Adjusted Income Balance Trial Balance Adjustments Trial Balance Statement Sheet Acct. Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 30,000 A/R 50,000 8,000 26,000 Office Supp. Equipment 13,000 17,000 A/D-Equip. A/P Salaries Pay. 4,000 15,000 42,000 Unearn. Rev. N/P (Vt) Fugazy, Cap. Fugazy, W/D 28,000 Service Rev. 99,000 Ins. Exp. 4,000 Salaries Exp. 31,000 Supplies Exp. 6,000 7,000 Interest Exp. Rent Exp. Depr. Exp. 190,000 190,000 Total Net income or loss Requirement 2. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in account format. Assume that there were no contributions made by the owner during the year. Begin by preparing the income statement. Review the Income Statement columns of the worksheet completed in Requirement 1. Fugazy Investment Advisers Income Statement Year Ended December 31, 2016 Net Income (Loss) Prepare the statement of owner's equity. Assume that there were no contributions made by the owner during the year. Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. (Use a minus sign or parentheses to show a decrease in capital. Exclude any zero-balance events for the period from the statement of owner's equity.) Review the Balance Sheet columns of the worksheet completed in Requirement 1. Fugazy Investment Advisers Statement of Owner's Equity Year Ended December 31, 2016 Fugazy, Capital, January 1, 2016 Fugazy, Capital, December 31, 2016 Prepare the classified balance sheet in account format on December 31, 2016. (If a box is not used in the balance sheet, leave the box empty; do not select a label or enter a zero. Abbreviations used: Depr.= Depreciation; Equip.=Equipment.) Review the Balance Sheet columns of the worksheet completed in Requirement 1. Review the Statement of Owner's Equity completed above. Fugazy Investment Advisers Balance Sheet December 31, 2016 Assets Liabilities Less: Owner's Equity Requirement 3. Prepare closing entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Start by closing revenues. Review the Income Statement columns of the worksheet completed in Requirement 1. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (1) Close expenses for the period. Review the Income Statement columns of the worksheet completed in Requirement 1. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (2) Close Income Summary. Review the Income Statement columns of the worksheet completed in Requirement 1. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (3) Close withdrawals. Review the Balance Sheet columns of the worksheet completed in Requirement 1. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (4)