Start from the posted T-accounts and the adjusted trial balance that Davis Consulting prepared for the company at December 31.

At December 31, the business gathers the following information for the adjusting entries:
a. Accrued service revenue, $ 550.
b. Earned $ 700 of the service revenue collected in advance on December 21.
c. Office supplies on hand, $ 200.
d. Depreciation on equipment, $ 30; Depreciation on furniture, $ 70.
e. Accrued $ 685 expense for administrative assistant’s salary.

Requirements
1. Complete the worksheet at December 31. (Optional)
2. Prepare an income statement for the month ended December 31.
3. Prepare a statement of retained earnings for the month ended December 31.
4. Prepare a classified balance sheet (report form) at December 31.
5. Journalize and post the closing entries at December 31. Denote each closing amount as Clo. and each account balance as Balance.
6. Prepare a post-closing trialbalance.

Transcribed Image Text:

DAVIS CONSULTING Unadjusted Trial Balance December 31, 2014 Balance Debit 16.400 1,200 900 1,800 4,200 Credit Account Title Cash Accounts Raceivabie Office Supplies Equipment Furniture Accounts Payable Unearned Revenue Common Stock Dividends Service Revenue Rent Experse Ubilities Expense Total 4,700 1,400 18,000 1,400 2,600 550 250 S 26,700 $26,700