Question

Answer 1

1.

Income Statement
Service Revenue		$              4,515
Salaries and Wages Expense	$            1,006
Utilities Expense	$               125
Advertising Expense	$               165
Supplies Expense	$            1,025
Depreciation Expense	$                 40
Insurance Expense	$               110
Interest Expense	$                 15
		$              2,486
Net Income		$              2,029

Statement of Retained Earnings
Beginning Balance	$                  -
Add : Net Income	$            2,029
Less : Dividend	$               500
Ending balance	$            1,529

Balance Sheet
Assets
Current Assets
Cash	$            1,180
Accounts Receivable	$               875
Supplies	$               350
Prepaid Insurance	$            1,210
Total Current Assets		$              3,615
Equipment	$            1,200
Less : Accumulated Depreciation	$                -40
Total Property, Plant and Equipment		$              1,160
Total Assets		$              4,775
Liabilities & Owner's Equity
Current Liabilities
Accounts Payable	$                 75
Salaries and Wages Payable	$                 56
Unearned Service Revenue	$               300
Total Current Liabilities		$                 431
Non-Current Liabilities
Notes Payable	$            2,000
Interest Payable	$                 15
Total Non-Current Liabilities		$              2,015
Total Liabilities		$              2,446
Owner's Equity
Share Capital	$               800
Retained Earnings	$            1,529
Total Owner's Equity		$              2,329
Total Liabilities & Owner's Equity		$              4,775

2.

Account Titles	Debit	Credit
Service Revenue	4515
Income Summary		4515
(TO close revenue accounts)
Income Summary	$            2,486
Salaries and Wages Expense		$              1,006
Utilities Expense		$                 125
Advertising Expense		$                 165
Supplies Expense		$              1,025
Depreciation Expense		$                   40
Insurance Expense		$                 110
Interest Expense		$                   15
(To close expense accounts)
Income Summary	$            2,029
Retained Earnings		$              2,029
(To close income summary)
Retained Earnings	$               500
Dividends		$                 500

3. Post Closing Trial

Account Titles	Debit	Credit
Cash	$            1,180
Accounts Receivable	$               875
Supplies	$               350
Prepaid Insurance	$            1,210
Equipment	$            1,200
Accumulated Depreciation		40
Accounts Payable		$                   75
Salaries and Wages Payable		$                   56
Unearned Service Revenue		$                 300
Notes Payable		$              2,000
Interest Payable		$                   15
Share Capital		$                 800
Retained Earnings		$              1,529
Total	$            4,815	$              4,815