The Grant Consulting Company has prepared a trial balance on the following partially completed worksheet for the year ended December 31, 2007:

Additional information:
(a) On January 1, 2007 the company had paid two years' rent in advance at $100 a month on its office space,
(b) The office equipment is being depreciated on a straight-line basis over a 10-year life, and no residual value is expected,
(c) Interest of $150 has accrued on the note payable but has not been paid, and
(d) The income tax rate is 30% on current income and will be paid in the first quarter of 2008.

Required
1. Complete the worksheet.
2. Prepare financial statements for2007.

Transcribed Image Text:

Retained Income Statement Balance Sheet Tial Balance Adiustments Debit Statement iCredit Debit Credit Debit Credit Credit Accounts Credit Debit Prepaid rent Office Accumulated d 2400 nt 1,400 2,000 4,000 3,200 Capital stock (200 shares) Retained earnings (1/1/07) Dividends distributed Consulting revenues 6,100 Miscellaneous expenses Totals