Required information

P$4-7($Algo$)$ Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share LO$4-1,4-2,4-4$

Skip to question

$[$The following information applies to the questions displayed below.$]$

Tunstall, Incorporated, a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December $31$:

Tunstall, Incorporated

Unadjusted Trial Balance

At December $31$

Debit Credit

Cash $47,200$

Accounts receivable $12,300$

Supplies $610$

Prepaid insurance $660$

Service trucks $16,700$

Accumulated depreciation $7,900$

Other assets $10,360$

Accounts payable $2,330$

Wages payable

Income taxes payable

Notes payable $(3$ years; $10\%$ interest due each September $30)12,000$

Common stock $(6,000$ shares outstanding$)1,866$

Additional paid$-$in capital $16,794$

Retained earnings $5,400$

Service revenue $91,040$

Wages expense $16,200$

Remaining expenses $($not detailed; excludes income tax$)33,300$

Income tax expense

Totals $137,330137,330$

Data not yet recorded at December $31$ included:

The supplies count on December $31$ reflected $$220$ in remaining supplies on hand to be used in the next year.

Insurance expired during the current year, $$660.$

Depreciation expense for the current year, $$4,000.$

Wages earned by employees not yet paid on December $31,$ $$680.$

Three months of interest expense $($for the note payable borrowed on October $1$ of the current year$)$ was incurred in the current year.

Income tax expense, $$4,980.$

P$4-7$ Part $2$

$2-$a$.$ Prepare an income statement $($with Operating Income and Other Items sections$)$ that include the effects of the preceding six transactions.

$2-$b$.$ Prepare a classified balance sheet that include the effects of the preceding five transactions.

Drop down menu options: Assets

Liabilities and stockholders' equity

Current assets

Current liabilities

Stockholders' equity Required information

Required $2$a

Required $2b$

Prepare an income statement $($with Operating Income and Other Items sections$)$ that include the effects of the preceding six transactions.

Note: Round "Earnings per share" to $2$ decimal places.

$\backslash$table$[[$TUNSTALL$,$ INCORPORATED,$],[$Income Statement,$],[],[,],[,],[,],[,],[,],[,],[,],[$Other Items:,$],[,]]$ Required information

P$4-7($Algo$)$ Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share LO$4-1,4-2,4-4$

$[$The following information applies to the questions displayed below.$]$

Tunstall, Incorporated, a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December $31$:

$\backslash$table$[[\backslash$table$[[$Tunstall$,$ Incorporated$],[$Unadjusted Trial Balance$],[$At December $31]]],[,$Debit,Credit$],[$Cash$,47,200,],[$Accounts receivable,$12,300,],[$Supplies$,610,],[$Prepaid insurance,$660,],[$Service trucks,$16,700,],[$Accumulated depreciation,,$7,900],[$Other assets,$10,360,],[$Accounts payable,,$2,330],[$Wages payable$],[$Income taxes payable$],[$Notes payable $(3$ years; $10\%$ interest due each September $30),,12,000],[$Common stock $(6,000$ shares outstanding$),,1,866],[$Additional paid$-$in capital,,$16,794],[$Retained earnings,,$5,400],[$Service revenue,,$91,040],[$Wages expense,$16,200,],[$Remaining expenses $($not detailed; excludes income tax$),33,300,],[$Income tax expense,,$],[$Totals$,137,330,137,330]]$

Data not yet recorded at December $31$ included: Complete this question by entering your answers in the tabs below.

Required $2$a

Required $2b$

Prepare a classified balance sheet that include the effects of the preceding six transactions.

Note: Amounts to be deducted should be indicated by a minus sign.Data not yet recorded at December $31$ included:

a$.$ The supplies count on December $31$ reflected $$220$ in remaining supplies on hand to be used in the next year.

b$.$ Insurance expired during the current year, $$660.$

c$.$ Depreciation expense for the current year, $$4,000.$

d$.$ Wages earned by employees not yet paid on December $31,$$$680.$

e$.$ Three months of interest expense $($for the note payable borrowed on October $1$ of the current year$)$ was incurred in

the current year.

f$.$ Income tax expense, $$4,980.$

P$4-7$ Part $2$

$2-$a$.$ Prepare an income statement $($with Operating Income and Other Items sections$)$ that include the effects of the preceding six

transactions.

$2-$b$.$ Prepare a classified balance sheet that include the effects of the preceding five transactions.

Complete this question by entering your answers in the tabs below.

Required $2$a

Prepare an income statement $($with Operating Income and Other Items sections$)$ that include the effects of the preceding