The adjusted trial balance for Edgemont Entertainment Solutions is as follows:

Instructions

a. Prepare an income statement, statement of owner?s equity, and a classified balance sheet. M. Edgemont made an additional investment in the business of $4,000 during 2021. The investment has been recorded and it is included in the capital account.

b. Prepare the closing entries.

c. Post the closing entries.

d. Prepare a post-closing trial balance.

Define current assets and explain how current assets are typically arranged within the current assets section of the balance sheet.

Transcribed Image Text:

EDGEMONT ENTERTAINMENT SOLUTIONS Adjusted Trial Balance December 31, 2021 Dr. Cr. Cash $ 6,200 Accounts receivable 7,500 Prepaid insurance Equipment Accumulated depreciation-equipment Accounts payable M. Edgemont, capital M. Edgemont, drawings Service revenue 1,800 33,000 $ 8,600 14,700 34,000 7,200 46,000 Depreciation expense Insurance expense Salaries expense Utilities expense 2,800 1,200 39,600 4,000 Totals $103,300 $103,300