Improv Club (IC) features entertaining improvisational theatre performances. The theatre features a range of shows and talented performers. IC prepares financial statements on an annual basis. The following year-end accounts as of December 31, 2023 are listed in alphabetical order and have normal balances.

Required
1. Prepare an adjusted trial balance as at December 31, 2023. Will Nick Stilz’s capital account of $110,100 appear on the balance sheet as at December 31, 2023? Explain.
2. Prepare the closing entries for the company.
3. What is the ending balance of Nick Stilz’s capital account as at December 31, 2023?

Transcribed Image Text:

Accumulated depreciation, equipment $ 13,000 Cash 40,000 Depreciation expense, equipment 4,000 Equipment 46,000 Insurance expense 3,000 Nick Stilz, capital 110,100 Nick Stilz, withdrawals 43,000 Prepaid insurance 6,500 Rent expense 61,000 Salaries expense 42,000 Supplies Supplies expense Ticket revenue Unearned revenue 4,000 8,600 131,000 4,000