Question

The completed adjusted trial balance for Sandhill Company is below. 

 SANDHILL COMPANY Adjusted Trial Balance December 31, 2021 

Prepare an income statement. 

Prepare a statement of owner's equity.

Prepare a classified balance sheet. 

Prepare the closing entries.

Post the closing entries and calculate the balance in each account.

Prepare a post-closing trial balance. 

Answer 1

		INCOME STATEMENT
	a	Service Revenue		$60,800
		Expenses:
	b	Repairs Expense	$2,100
	c	Depreciation expense	$1,600
	d	Insurance expense	$2,300
	e	Salaries expense	$29,200
	f	Utilities expense	$2,300
	g=b+c+d+e+f	Total expenses		$37,500
	h=a-g	Net Income		$23,300
		STATEMENT OF OWNER' S EQUITY
		Owner's Equity at beginning	$20,600
		Less: Owner's drawings	$11,600
		Add: Infome for the year	$23,300
		Owner's Equity at End of Year	$32,300
		BALANCE SHEET
		Assets:
		Cash	$7,900
		Accounts Receivable	$10,700
		Prepaid Insurance	$3,500
		Total Current Assets	$22,100
		Equipment	$25,200
		Accumulated Depreciation	($2,900)
		Net Non current assets	$22,300
		Total Assets	$44,400
		Liabilities:
		Accounts Payable	$9,200
		Salaries Payable	$2,900
		Total Liabilities	$12,100
		Owner's Equity	$32,300
		Total Liabilities and Owner's Equity	$44,400
		CLOSING ENTRIES
		ACCOUNT TITLES	DEBIT	CREDIT
		Service Revenue	$60,800
		Income Summary		$60,800
		Income Summary	$37,500
		Repairs Expense		$2,100
		Depreciation expense		$1,600
		Insurance expense		$2,300
		Salaries expense		$29,200
		Utilities expense		$2,300