At the end of its annual accounting period, a trial balance from the ledger of Rip's Repair Service appeared as follows:

\section*{Required}
1. Enter the trial balance on a work sheet form and complete the work sheet using the information that follows

a. Expired insurance, \(\$ 800\).

b. A repair supplies inventory showed \(\$ 1,160\) of unused supplies on hand.

c. Estimated depreciation on repair equipment, \(\$ 990\).

d. Wages earned by the one employee but unpaid and unrecorded, \(\$ 120\).
2. From the work sheet prepare an income statement, a statement of changes in owner's equity, and a classified balance sheet. Mr. Horn did not make additional investments in the business during 1990 .
3. Prepare adjusting journal entries and compound closing entries.
Problem 4-3 All steps in the accounting cycle (covers two accounting cycles)
(L.O. 1, 2, 3, 4, 6)

Transcribed Image Text:

Cash Prepaid insurance RIP'S REPAIR SERVICE Unadjusted Trial Balance. December 31, 1990 Repair supplies. Repair equipment. Accumulated depreciation, repair equipment Accounts payable. Rip Horn, capital Rip Horn, withdrawals. Revenue from repairs Wages expense Rent expense. Utilities expense Totals. $ 1,825 1,300 4,375 7,860 $ 1,920 295 6,185 28,200 55,845 15,210 4,500 975 $64,245 $64,245