PREPARATION OF A WORKSHEET Unadjusted account balances at December 31, 2009, for Rapisarda Company at the top of the next page.

The following data are not yet recorded:

a. Depreciation on the equipment is $25,000.

b. Unrecorded wages owed at December 31, 2009: $2,000.

c. Prepaid rent at December 31, 2009: $10,000.

d. Income tax rate: 30 percent.

Required:

Prepare a completed worksheet for Rapisarda Company.

Account Titles Debit Credit Cash $ 2,000 Accounts Receivable 33,000 Prepaid Rent 26,000 Equipment 211,000 Accumulated Depreciation, Equipment $ 75,000 Other Assets 24,000 Accounts Payable 12,000 Note Payable (due in 10 years) 40,000 Common Stock 100,000 Retained Earnings, 12/31/2008 11,000 Service Revenue 243,000 Rent Expense 84,000 Wages Expense 97,000 Interest Expense 4,000 Totals $481,000 $481,000 Problem Set A