The trial balance of Wolfe Anvils at October 31, 2012, and the data for the month-end adjustments follow: Adjustment data
a. Unearned service revenue still unearned at October 31, $1,200.
b. Prepaid rent still in force at October 31, $2,500.
c. Supplies used during the month, $1,000.
d. Depreciation for the month, $300.
e. Accrued salary expense at October 31, $200.
1. Prepare adjusting journal entries.
2. Enter the trial balance on a worksheet and complete the worksheet through the
Adjusted Trial Balance of Wolfe Anvils for the month ended October 31, 2012.
3. Prepare the income statement, the statement of owners equity, and the classified balance sheet in report form.
4. Using the worksheet data that you prepared, journalize the closing entries and post the adjusting and closing entries to T-accounts. Use dates and show the ending balance of each account.
5. Prepare a post-closing trial balance.
6. Calculate the current and debt ratios for thecompany.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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