The trial balance of Fugazy Investment Advisers, Inc., at December 31, 2012, follows:

Adjustment data at December 31, 2012:
a. Unearned service revenue earned during the year, $500.
b. Supplies on hand, $1,000.
c. Depreciation for the year, $6,000.
d. Accrued salary expense, $1,000.
e. Accrued service revenue, $4,000.
Requirements
1. Enter the account data in the Trial Balance columns of a worksheet, and complete the worksheet through the Adjusted Trial Balance. Key each adjusting entry by the letter corresponding to the data given. Leave a blank line under Service revenue.
2. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in account format.
3. Prepare closing journal entries from the worksheet.

4. Did the company have a good or a bad year during 2012? Give the reason for your answer.(Challenge)

Transcribed Image Text:

FUGAZY INVESTMENT ADVISERS, INC. Trial Balance December 31, 2012 Balance Account Debit Credit $ 32,000 Cash Accounts receivable Supplies Equipment Accumulated depreciation Accounts payable Salary payable 46,000 3,000 25,000 $ 11,000 15,000 Unearned service revenue 2,000 Note payable, long-term 39,000 Common stock 17,600 Retained earnings 20,400 Dividends 50,000 Service revenue 97,000 Salary expense Supplies expense Depreciation expense 32,000 Interest expense 3,000 9,000 Rent expense Insurance expense 2,000 $202,000 $202,000 Total