The adjusted trial balance columns of the worksheet for Sparks Company, owned by Billy Sparks, are as follows.

Instructions

(a) Complete the worksheet by extending the balances to the financial statement columns.

(b) Prepare an income statement, owner's equity statement, and a classified balance sheet. \($10,000\) of the notes payable become due in 2009.) Billy Sparks did not make any additional investments in the business during the year.

(c) Prepare the closing entries. Use J14 for the journal page.

(d) Post the closing entries. Use the three-column form of account. Income Summary is No. 350.

(e) Prepare a post-closing trial balance.

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SPARKS COMPANY Worksheet For the Year Ended December 31, 2008 Account Adjusted Trial Balance No. Account Titles Dr. Cr. 101 Cash 11,600 112 Accounts Receivable 15,400 126 Supplies 2,000 130 Prepaid Insurance 2,800 151 Office Equipment 34,000 152 Accumulated Depreciation-Office Equipment 8,000 200 Notes Payable 20,000 201 Accounts Payable 9,000 212 Salaries Payable 3,500 230 Interest Payable 800 301 B. Sparks, Capital 25,000 306 KB. Sparks, Drawing 10,000 400 Service Revenue 85,000 610 Advertising Expense 12,000 631 Supplies Expense 5,700 711 Depreciation Expense 8,000 722 Insurance Expense 5,000 726 Salaries Expense 44,000 905 Interest Expense 800 Totals 151,300 151,300