Yoda Inc. was organized on July 1, 2001. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown here:

Instructions

(a) Journalize the adjusting entries that were made.

(b) Prepare an income statement and a retained earnings statement for the 3 months ending September 30 and a balance sheet at September 30.

(c) Identify which accounts should be closed on September 30.

(d) If the note bears interest at 12%, how many months has it been outstanding?

Transcribed Image Text:

YODA INC. Trial Balance September 30, 2001 Unadjusted Adjusted Dr. Cr. Dr. Cr. Cash Accounts Receivable Prepaid Rent Supplies Equipment $ 6,700 $ 6,700 400 1,000 1,500 900 1,200 1,000 15,000 15,000 Notes Payable Accumulated Depreciation-Equipment Accounts Payable $ 350 $ 5,000 5,000 1,510 1,510 Salaries Payable Interest Payable 400 50 Unearned Rent Revenue 900 600 Common Stock 14,000 14,000 Retained Earnings 0 0 Dividends 600 600 Commission Revenue 14,000 14,600 Rent Revenue 400 700 Salaries Expense 9,000 9,400 Rent Expense 900 1,500 Depreciation Expense 350 Supplies Expense 200 Utilities Expense 510 510 Interest Expense 50 $35,810 $35,810 $37,210 $37,210