The adjusted trial balance of Karise Repairs on December 31 follows. Required 1. Prepare an income statement
Question:
The adjusted trial balance of Karise Repairs on December 31 follows.
Required
1. Prepare an income statement and a statement of owner’s equity for the year, and a classified balance sheet at December 31. The C. Karise, Capital account balance was $33,000 on December 31 of the prior year, and there were no owner investments during the current year.
2. Prepare the December 31 closing entries.
Adjusted Trial Balance December 31 No. Account Title Debit Credit $ 14,000 Cash ....... Office supplies. 101 124 1,300 128 Prepaid insurance 2,050 167 Equipment .... 50,000 $ 5,000 Accumulated depreciation-Equipment. Accounts payable.. Wages payable.... C. Karise, Capital C. Karise, Withdrawals Services revenue 168 201 14,000 210 600 301 33,000 302 16,000 403 90,950 612 Depreciation expense-Equipment. 5,000 623 Wages expense Insurance expense.. Rent expense.. 37,500 637 800 640 10,600 650 Office supplies expense.. 3,600 690 Utilities expense... 2,700 Totals. $143,550 $143,550
Step by Step Answer:
4 In case we consider 800 as prepaid insurance expense the net income will be reduced by 800 and th...View the full answer
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A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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