Problem 4-1A Preparing financial statements and closing entries

LO2, LO4, LO6

The adjusted trial balance for

Tybalt Construction on December 31 of the

current year follows. Oro Tybalt

invested $5,000 cash in the business during the

year. The O. Tybalt, Capital

account balance was $121,400 on December 31 of the

prior year.

Adjusted Trial Balance

December 31Adjusted Trial Balance

December 31

No. Account Title Debit Credit

101 Cash $ 5,000

126 Supplies 31,100

128 Prepaid insurance

7,000

167 Equipment 40,000

168 Accumulated depreciationEquipment

$20,000

173 Building

150,000

174 Accumulated depreciationBuilding

50,000

183 Land

55,000

201 Accounts payable

16,500

203 Interest payable

2,500

208 Rent payable

3,500

210 Wages payable

2,500

213 Property taxes payable

900

236 Unearned revenue

14,500

251 Long-term notes payable

60,000

301 O. Tybalt, Capital

126,400

302 O. Tybalt, Withdrawals

13,000

403 Services revenue

97,000

406 Rent revenue

14,000

409 Interest revenue

4,100 Adjusted Trial Balance

December 31

No. Account Title Debit Credit

606 Depreciation expenseBuilding

11,000

612 Depreciation expenseEquipment

6,000

623 Wages expense

52,900

633 Interest expense

5,100

637 Insurance expense

10,000

640 Rent expense

13,400

652 Supplies expense

7,400

683 Property taxes expense

5,000

Totals

$411,900

$411,9002.1. Prepare the income statement and the statement of

owner's equity for the current

year ended December 31, and the classified

balance sheet at December 31. CHECK FIGURE: 1. Total assets =$218,100; Net income =$4,300 Prepare the necessary closing entries at December 31 of

the current year.