Jarmuz Management Services began business on January 1, 2019, with a capital investment of $90,000. The company manages condominiums for owners (service revenue) and rents space in its own office building (rent revenue). The trial balance and adjusted trial balance columns of the worksheet at the end of 2020 are as follows.

Instructions

a. Prepare a complete worksheet.

b. Prepare a classified balance sheet. (Note: $30,000 of the mortgage note payable is due for payment next year.)

c. Journalize the adjusting entries.

d. Journalize the closing entries.

e. Prepare a post-closing trial balance.

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Jarmuz Management Services Worksheet For the Year Ended December 31, 2020 Adjusted Trial Balance Trial Balance Accounts Titles Dr. Dr. Cr. Cr. Cash 13,800 13,800 Accounts Receivable 28,300 28,300 Prepaid Insurance 3,600 2,400 Land 67,000 67,000 Buildings 127,000 127,000 Equipment Accounts Payable 59,000 59,000 12,500 12,500 Unearned Rent Revenue 6,000 1,500 Mortgage Payable 120,000 120,000 Common Stock 90,000 90,000 Retained Earnings 54,000 54,000 Dividends 22,000 22,000 Service Revenue 90,700 90,700 29,000 33,500 Rent Revenue Salaries and Wages Expense 42,000 42,000 Advertising Expense 20,500 20,500 Utilities Expense 19.000 19,000 Totals 402,200 402,200 |Insurance Expense 1,200 Depreciation Expense Accumulated Depreciation- 6,600 3,000 Buildings 3,600 Accumulated Depreciation- Equipment Interest Expense Interest Payable 10,000 10,000 Totals 418,800 418,800