Whitaker Consulting Company has prepared a trial balance on the following partially completed worksheet for the year ended December 31, 2016:

Additional information:
(a) On January 1, 2016, the company had paid 2 years€™ rent in advance at $100 a month for 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,
(d) The income tax rate is 30% on current income and will be paid in the first quarter of 2017.
Required:
1. Complete the worksheet.
2. Prepare financial statements for 2016.

Transcribed Image Text:

Retained Earnings Statement Balance Sheet Statement Debit Credit Debit Credit Debit Credit DebitCredit Debit Credit Trial Balance Adjustments Accounts 6 Prepaid Rent 7Office Equipment 3,800 2,400 7,000 Accumulated Depreciation 9Note Payable (due 7/1/17) 10 Common Stock 1Retained Eanings (1/1/1 12 Dividends 2,000 4,000 200 Consulting Revenues 6,100 14 Salaries Expense 2,500 800 15Miscellaneous Expenses Totals 16,700 16.700