Prison Watch Company offers legal consulting advice to prison inmates. Prison Watch Company prepared the end-of-period spreadsheet (work sheet) at the top of the following

Question

39 users unlocked this solution today!

Prison Watch Company offers legal consulting advice to prison inmates. Prison Watch Company prepared the end-of-period spreadsheet (work sheet) at the top of the following page at June 30, 2010, the end of the current fiscal year.

Instructions

1. Prepare an income statement for the year ended June 30.

2. Prepare a statement of owner's equity for the year ended June 30. No additional investments were made during the year.

3. Prepare a balance sheet as of June 30.

4. On the basis of the end-of-period spreadsheet (work sheet), journalize the closing entries.

5. Prepare a post-closing trial balance.

Prison Watch Company End-of-Period Spread sheet (Work Sheet) For the Year Ended June 30, 2010 Adjusted Unadjusted Adjustments Dr. Trial Balance Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Account Title Cr. Cr. Dr. Cr. Dr. Cr. 5,100 12,750 3,600 2,025 80,000 200,000 Cash 5,100 13,950 2,700 5,100 13,950 2,700 500 (a) 1,200 Accounts Receivable (b) Prepaid Insurance 900 Supplies (c) 1,525 500 80,000 200,000| Land 80,000 200,000 Building Acc. Depr.-Building Equipment Acc. Depr.-Equipment Accounts Payable Sal. & Wages Pay able 92,500 (d) 2,500 92,500 90,000 140,000 140,000 140,000 60,450 9,750 1,900 54,450 9,750 60,450 9,750 1,900 (e) 6,000 (f) 1,900 4,500 (g) 4,000 311,300 Unearned Rent 500 500 Cassandra Jaffee, Capital Cassandra Jaffee, Drawing 311,300 311,300 20,000 20,000 20,000 281,200 4,000 281,200 4,000 (a) 1,200 Fees Revenue 280,000 (9) 4,000 Rent Revenue Salaries & Wages Expense Advertising Expense Utilities Expense Travel Expense Depr. Exp.-Equipment Depr. Exp-Building Supplies Expense Insurance Expense Misc. Expense 147,000 86,800 30,000 18,750 6,000 2,500 1,525 145,100 86,800 30,000 18,750 (f) 1,900 147,000 86,800 30,000 18,750 6,000 2,500 (e) 6,000 (d) 2,500 (c) 1,525 (b) 1,525 900 900 900 5,875 750.000 750.000 5,875 5,875 761,600 761,600 299,350 285,200 462,250 476,400 14,150 299.350 299,350 18,025 18,025 14,150 476,400 476,400 Net loss