Refer to the data for Jen Weaver Insurance in Problem 4-34B. After journalizing and posting Weaver's adjusting and closing entries, prepare the company's income statement for the year ended April 30, 2008. List expenses in descending order-that is, largest first, second-largest next, and so on. 

Problem 4-34B

The unadiusted trial balance of Jen Weaver Insurance at April 30, 2008, follow's on the next page. Adjustment data at April 30, 2008, consist of

a. Accrued service revenue, \(\$ 1,600\).

b. Depreciation for the year: equipment, \(\$ 1,000\); building, \(\$ 3,000\).

c. Accrued salary expense, 5800 .

d. Unearned service revenue earned during the year, \(\$ 1,100\).

e. Supplies used during the year, \(\$ 500\).

f. Prepaid insurance expired, \(\$ 700\).

Requirements 

1. Open T-accounts for Jen Weaver, Capital and all the accounts that follow. Insert their unadjusted balances. Also open a T-account for Income Summary, which has a zero balance.

2. Journalize the adjusting entries and post to the accounts that you opened. Show the balance of each revenue account and each expense account.

3. Journalize the closing entries and post to the accounts that you opened. Draw double underlines under each account balance that you close to zero.

4. Compute the ending balance of Jen Weaver, Capital. 

Transcribed Image Text:

JEN WEAVER INSURANCE Adjusted Trial Balance April 30, 2008 Balance Account Title Debit Credit Cash $ 4,500 Accounts receivable 3,700 Supplies 3,600 Prepaid insurance 2,200 Equipment 13,900 Accumulated depreciation-equipment $ 8,400 Building 74,300 Accumulated depreciation-building 18,200 Accounts payable 19,500 Salary payable 800 Unearned service revenue 3,600 Jen Weaver, capital 30,300 Jen Weaver, withdrawals 27,500 Service revenue 98,500 Salary expense 32,800 Depreciation expense-equipment Depreciation expense-building Insurance expense 5,100 Utilities expense 4,900 Supplies expense 6,800 Total $179,300 $179.300