Heel-To-Toe Shoes adjusted trial balance on December 31, 2011, follows. Required 1. Prepare an income statement and

Heel-To-Toe Shoes’ adjusted trial balance on December 31, 2011, follows.

Required
1. Prepare an income statement and a statement of owner’s equity for the year 2011, and a classified balance sheet at December 31, 2011. There are no owner investments in 2011.
2. Enter the adjusted trial balance in the first two columns of a six-column table. Use the middle two columns for closing entry information and the last two columns for a post-closing trial balance. Insert an Income Summary account (No. 901) as the last item in the trial balance.
3. Enter closing entry information in the six-column table and prepare journal entries for it.
Analysis Component
4. Assume for this part only that
a. None of the $1,100 insurance expense had expired during the year. Instead, assume it is a prepayment of the next period’s insurance protection.
b. There are no earned and unpaid wages at the end of the year.
Describe the financial statement changes that would result from these twoassumptions.

Transcribed Image Text:

HEEL-TO-TOE SHOES Adjusted Trial Balance December 31, 2011 Account Title 167 Equipment 210 Wages payable.... 30 P Holt, Capital 302 P Holt, Withdrawals 40 Repair fees earned 623 Wages expense 637 Insurance expense 640 Rent expense 651 Store supplies expense