The completed financial statement columns of the work sheet for Hubbs Company are shown below and on page 181.

Instructions

(a) Prepare an income statement, a retained earnings statement, and a classified balance sheet.
Stockholders made additional purchases of common stock of $4,000 during 2006.

(b) Prepare the closing entries.

(c) Post the closing entries and rule and balance the accounts. Use T accounts. Income Summary is account No. 350.

(d) Prepare a post-closing trial balance.

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Account HUBBS COMPANY Work Sheet For the Year Ended December 31, 2006 No. Account Titles 101 Cash 112 Accounts Receivable 130 Prepaid Insurance 157 167 201 Accounts Payable 212 Equipment Accumulated Depreciation Salaries Payable 311 Common Stock 320 Retained Earnings Income Statement Balance Sheet Dr. Cr. Dr. Cr. 10.200 7.500 1.800 28.000 8.600 11,700 3,000 20,000 14,000