P4-28A Preparing financial statements including a classified balance sheet in report form, preparing and posting closing...

 

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P4-28A Preparing financial statements including a classified balance sheet in report form, preparing and posting closing entries, and preparing a post-closing trial balance The adjusted trial balance of Ernest Real Estate Appraisal at June 30, 2016, follows: ERNEST REAL ESTATE APPRAISAL Adjusted Trial Balance June 30, 2016 Balance Account Title Debit Credit Cash $ 4,600 Accounts Receivable 5,600 Office Supplies 2,300 Prepaid Insurance 2,600 Building Accumulated Depreciation-Building 83,000 $ 25,400 Land 12,400 Accounts Payable Interest Payable Salaries Payable 19,600 8,000 2,200 Unearned Revenue 12,000 Notes Payable (long-term) 38,000 Ernest, Capital 41,500 Ernest, Withdrawals 27,600 Service Revenue 49,200 Insurance Expense 4,400 Salaries Expense 34,000 Supplies Expense 800 Interest Expense 8,000 Utilities Expense 2,300 Depreciation Expense-Building 8,300 Total $ 195,900 $ 195,900 Requirements 1. Prepare the company's income statement for the year ended June 30, 2016. 2. Prepare the company's statement of owner's equity for the ycar ended June 30, 2016. Assume that there were no contributions made by the owner during the year. 3. Prepare the company's classified balance shcet in report form at June 30, 2016. 4. Journalizing the closing entries. 5. T-accounts have been opened using the balances from the adjusted trial balance. Post the closing entries to the T-accounts. 6. Prepare the company's post-closing trial balance at June 30, 2016. P4-28A Preparing financial statements including a classified balance sheet in report form, preparing and posting closing entries, and preparing a post-closing trial balance The adjusted trial balance of Ernest Real Estate Appraisal at June 30, 2016, follows: ERNEST REAL ESTATE APPRAISAL Adjusted Trial Balance June 30, 2016 Balance Account Title Debit Credit Cash $ 4,600 Accounts Receivable 5,600 Office Supplies 2,300 Prepaid Insurance 2,600 Building Accumulated Depreciation-Building 83,000 $ 25,400 Land 12,400 Accounts Payable Interest Payable Salaries Payable 19,600 8,000 2,200 Unearned Revenue 12,000 Notes Payable (long-term) 38,000 Ernest, Capital 41,500 Ernest, Withdrawals 27,600 Service Revenue 49,200 Insurance Expense 4,400 Salaries Expense 34,000 Supplies Expense 800 Interest Expense 8,000 Utilities Expense 2,300 Depreciation Expense-Building 8,300 Total $ 195,900 $ 195,900 Requirements 1. Prepare the company's income statement for the year ended June 30, 2016. 2. Prepare the company's statement of owner's equity for the ycar ended June 30, 2016. Assume that there were no contributions made by the owner during the year. 3. Prepare the company's classified balance shcet in report form at June 30, 2016. 4. Journalizing the closing entries. 5. T-accounts have been opened using the balances from the adjusted trial balance. Post the closing entries to the T-accounts. 6. Prepare the company's post-closing trial balance at June 30, 2016.

Answer rating: 100% (QA)

1 Income statement service revenue 49200 less Expenses Insurance expense 4400 salaries expense 34000 ... View the full answer