Preparing trial balances, closing entries, and financial statements Santo Company’s adjusted trial balance on December 31, 2008, follows.

Required 

1. Prepare an income statement and a statement of owner’s equity for the year 2008, and a balance sheet at December 31, 2008. There are no owner investments in 2008.
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 them.

Transcribed Image Text:

SANTO COMPANY Adjusted Trial Balance December 31, 2008 P. Holt, Capital Account Title No 101 Cash 125 Store supplies 128 Prepaid insurance 167 168 Equipment Accumulated depreciation-Equipment 201 Accounts payable 210 Wages payable 301 302 P. Holt, Withdrawals 401 612 623 637 640 651 690 Totals Repair fees earned Depreciation expense-Equipment Wages expense Insurance expense Rent expense Store supplies expense Utilities expense Debit Credit $1445,000 5140 00 1200 00 3100,000 1500000 $8 0:00:00 1500 00 270000 35 6,50,00 54 700 00 2000 00 26 400,00 600 00 3600 00 1200 00 1960 00 $102,550.00 $102,5,50 00