The adjusted trial balance for Marine Fishing Centre is as follows:

Instructions

a. Prepare an income statement for the year ended March 31, 2021.

b. Prepare a statement of owner?s equity. The owner, Rachael Falkner, invested $2,300 cash in the business during the year. (Note: The investment has been recorded and it is included in the capital account.)

c. Prepare a classifi ed balance sheet.

d. Prepare closing entries.

e. Use T accounts to post the closing entries and calculate the balance in each account. (Ignore the accounts not affected by the closing entries.)

f. Prepare a post-closing trial balance and compare the balance in the R. Falkner, Capital account with the information in the statement of owner?s equity.

What alternatives should be considered when deciding on the presentation of information in the classified balance sheet?

Transcribed Image Text:

MARINE FISHING CENTRE Adjusted Trial Balance March 31, 2021 Debit Credit Cash $ 7,720 Interest receivable Supplies Long-term investments 750 1,425 30,000 Land 46,800 Building Accumulated depreciation-building 186,900 $ 31,150 Equipment Accumulated depreciation-equipment Accounts payable Interest payable 36,200 18,100 5,875 990 Unearned revenue 2,190 Notes payable ($6,000 must be paid in Feb. 2022) R. Falkner, capital R. Falkner, drawings 66,000 165,300 46,200 Service revenue 124,300 Interest revenue 1,500 Depreciation expense Interest expense Insurance expense Salaries expense 9,850 3,960 4,500 30,000 Supplies expense Utilities expense 5,700 5,400 $415,405 $415,405