Sampras Company has the following information at the end of its 2nd year of operations: Sampras...

 

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Sampras Company has the following information at the end of its 2nd year of operations: Sampras Co. Unadjusted Trial Balance At December 31, 2022 Debit Credit Cash 46,100 Accounts receivable 15,500 Supplies 580 Prepaid insurance expense 600 Equipment 17,100. Accumulated depreciation 7,700 Long-term investments 10,360 Accounts payable 2,380 Unearned revenue 5,000 Notes payable (2 year, 6%) 16,000 Common stock (20,000 shares issued) 2,000 Additional paid-in capital 18,060 Retained earnings 1/22 4,100 Service revenue Wages expense 84,390 43,190 Utilities expense Advertising expense Totals Data not yet recorded at December 31: a. b.. C. d. e. 1,200 5,000 139,630 139,630 f. The supplies count on hand at 12/31 was $140. Insurance expired during the current year, $500. Depreciation expense for the current year, $3,300. Wages earned by employees not yet paid on December 31, $630. The Note payable is dated October 1st of the current year. Income tax expense, $5,280. The company completed 40% of the services that were paid in advance. Required: 1. Prepare the adjusting entries needed at December 31 (use to indicate the effect for each account). 2. Prepare an income statement (follow the sample statement posted on Canvas). 3. Prepare a balance sheet. 4. Prepare closing entries. 5. Prepare a post-closing trial balance. Sample Company Statement of Income For the Year Ended December 31, 2020 Sales Revenue Less: Cost of Goods Sold Gross Profit $ 5,864,600 3,659,400 2,205,200 Operating Expenses: Salary Expense 500,000 Advertising Expense 350,000 Loss on Disposal of Assets 515,300 Utilities Expense 32,700 Maintenance Expense 550,000 Total Operating Expenses 1,948,000 Gain on Disposal of Assets 20,200 Operating Income 277,400 Other Revenues and (Expenses): Dividend Revenue 10,000 Interest Revenue 5,000 Gain on Sale of Investments 150,000 Loss on Sale of Investments (25,500) Interest Expense (55,000) Total Other Rev. and (Expenses) 84,500 Income Before Income Taxes 361,900 Income Tax Expense 108,500 Net Income $253,400 Earnings Per Share (10,000 shares) Subtotals $25.34 Sampras Company has the following information at the end of its 2nd year of operations: Sampras Co. Unadjusted Trial Balance At December 31, 2022 Debit Credit Cash 46,100 Accounts receivable 15,500 Supplies 580 Prepaid insurance expense 600 Equipment 17,100. Accumulated depreciation 7,700 Long-term investments 10,360 Accounts payable 2,380 Unearned revenue 5,000 Notes payable (2 year, 6%) 16,000 Common stock (20,000 shares issued) 2,000 Additional paid-in capital 18,060 Retained earnings 1/22 4,100 Service revenue Wages expense 84,390 43,190 Utilities expense Advertising expense Totals Data not yet recorded at December 31: a. b.. C. d. e. 1,200 5,000 139,630 139,630 f. The supplies count on hand at 12/31 was $140. Insurance expired during the current year, $500. Depreciation expense for the current year, $3,300. Wages earned by employees not yet paid on December 31, $630. The Note payable is dated October 1st of the current year. Income tax expense, $5,280. The company completed 40% of the services that were paid in advance. Required: 1. Prepare the adjusting entries needed at December 31 (use to indicate the effect for each account). 2. Prepare an income statement (follow the sample statement posted on Canvas). 3. Prepare a balance sheet. 4. Prepare closing entries. 5. Prepare a post-closing trial balance. Sample Company Statement of Income For the Year Ended December 31, 2020 Sales Revenue Less: Cost of Goods Sold Gross Profit $ 5,864,600 3,659,400 2,205,200 Operating Expenses: Salary Expense 500,000 Advertising Expense 350,000 Loss on Disposal of Assets 515,300 Utilities Expense 32,700 Maintenance Expense 550,000 Total Operating Expenses 1,948,000 Gain on Disposal of Assets 20,200 Operating Income 277,400 Other Revenues and (Expenses): Dividend Revenue 10,000 Interest Revenue 5,000 Gain on Sale of Investments 150,000 Loss on Sale of Investments (25,500) Interest Expense (55,000) Total Other Rev. and (Expenses) 84,500 Income Before Income Taxes 361,900 Income Tax Expense 108,500 Net Income $253,400 Earnings Per Share (10,000 shares) Subtotals $25.34