Pa1 Group-1 P4
Pa1 Group-1 P4
Pa1 Group-1 P4
Ex2:
Ex3:
4.
WATSON ANVILS
Adjusted Trial Balance
December 31, 2018
Debit Credit
Cash $13,560
Accounts Receivable 17,000
Prepaid Rent 2,000
Office Supplies 2,200
Equipment 30,000
Accumulated Depreciation - Equipment $11,400
Accounts Payable 7,200
Salaries Payable 180
Unearned Revenue 3,600
Watson, Capital 29,600
Watson, Withdrawals 4,600
Service Revenue 21,000
Salaries Expense 2,480
Rent Expense 140
Depreciation Expense-Equipment 400
Supplies Expense 600
Totals $72,980 $72,980
5.
WATSON ANVILS
Income Statement
For the year ended December 31, 2018
Revenue
Service Revenue $21,000
Expenses
Salaries Expense $2,480
Rent Expense 140
Depreciation Expense - Equipment 400
Supplies Expense 600
Total Expenses 3,620
Net Income $17,380
WATSON ANVILS
Owner’s Equity Statement
For the year ended December 31, 2018
Owner’s Capital, January 1, 2018 $29,600
Add: Net income 17,380
46,980
Less: Owner’s Drawings 4,600
Owner’s Capital, December 31, 2018 $42,380
WATSON ANVILS
Classified Balance Sheet
December 31, 2018
Assets
Current Assets
Cash $13,560
Accounts Receivable 17,000
Prepaid Rent 2,000
Office Supplies 2,200
Total Current Assets $34,760
Property, Plant, and Equipment
Equipment 30,000
Less: Accumulated Depreciation - Equipment 11,400 18,600
Total Assets $53,360
Liabilities and Owner’s Equity
Liabilities
Current Liabilities
Accounts Payable $7,200
Salaries Payable 180
Unearned Revenue 3,600
Total Current Liabilities $10,980
Owner’s Equity
Owner’s Capital 42,380
Total Liabilities and Owner’s Equity $53,360
6. Closing Entries:
(1) Service Revenue………………………………………………………………………….21,000
Income Summary…………………………………………………………………………………21,000
(To close revenue account)
(4) Watson,Capital……………………………………………………………………………....4,600
Watson,Withdrawals……………………………………………………………………................4,600
(To close withdrawals to capital)
December 31 21,000
(1) 21,000 0
Salaries Expense
December 31 2,480
(2) 2,480
0
Rent Expense
December 31 140
(2) 140
Depreciation Expense-Equipment
December 31 400
(2) 400
Supplies Expense
December 31 600
(2) 600
0
Income Summary
3,620 17,380
(2)
17,380 0
(3)
Watson,Withdrawals
December 31 4,600
(4) 4,600
Watson,Capital
December 31 29,600
17,380 46,980
(3)
WATSON ANVILS
Post-Closing Trial Balance
December 31,2018
Debit Credit
Cash $13,560
Accounts Receivable 17,000
Prepaid Rent 2,000
Office Supplies 2,200
Equipment 30,000
Accumulated Depreciation - Equipment $11,400
Accounts Payable 7,200
Salaries Payable 180
Unearned Revenue 3,600
Watson, Capital 42,380
Totals $64,760 $64,760