Tutor
BS Accounting, Online and Private Tutor
The information given, I already had. This is the information that I need.
Problem # 2
Instructions: Please read the information below, the instructions, and then follow the instructions. First do the entries, and make sure you adjust any accounts that are necessary. Please show all calculations that you want to, as it will help.
(a) Journalize the entries required to complete the closing of the accounts.
(b) Prepare an retained earnings statement for the year ended December 31, 2008.
All revenue and expense accounts have been closed at the end of the calendar year for the Staley Bears Company. The Income Summary account has total debits of $520,000 and total credits of $600,000. As of the same date, Retained Earnings has a balance of $115,000, and Dividends has a balance of $48,000.
Instructions:
(b) Prepare a classified balance sheet for Ken's Concepts at December 31, 2008 assuming the note payable is a long-term liability.
The financial statement columns of the worksheet for Ken's Concepts at December 31, 2008, are as follows:
KEN'S CONCEPTS
Worksheet
For the Year Ended December 31, 2008
Income Statement Balance Sheet
Accounts Debit Credit Debit Credit
Cash 15,000
Accounts Receivable 7,000
Supplies 4,000
Prepaid Insurance 6,000
Audio Equipment 209,000
Accumulated Depreciation-Audio Equipment 29,000
Accounts Payable 19,000
Note Payable 70,000
Salaries Payable 3,000
Common Stock 20,000
Retained Earnings 92,000
Dividends 14,000
Audio Revenue 123,000
Advertising Expense 21,000
Depreciation Expense 12,000
Insurance Expense 3,000
Rent Expense 17,000
Salaries Expense 42,000
Supplies Expense 6,000
Totals 101,000 123,000 255,000 233,000
Net Income 22,000 22,000
123,000 123,000 255,000 255,000