The completed financial statement columns of the worksheet for Lathrop Com- Prepare financial statements, pany are shown below and on the next page. closing entries, and postclosing trial balance.

Lathrop Company (LO 1, 2, 3, 6)

Worksheet For the Year Ended December 31, 2014 Income Statement Balance Sheet Account No. Account Titles Dr. Cr. Dr. Cr.

101 Cash 8,900 In Accounts Receivable 10,800 130 Prepaid Insurance 2,800 o5/ Equipment 28,000 167 Accumulated Depreciation—Equip. 4,500 201 Accounts Payable 2,000 aiid Salaries and Wages Payable 2,400 311 Common Stock 12,000 320 Retained Earnings 16,400 332 Dividends 8,000 400 Service Revenue 56,000 622 Maintenance and Repairs Expense 1,600 Neeount Income Statement Balance Sheet No. Account Titles Dr. Cr. Dr. Cr.
TALI Depreciation Expense 3,000 G22. Insurance Expense 1,800 726 Salaries and Wages Expense 27,000 732, Utilities Expense 1,400 Totals 34,800 56,000 58,500 37,300 Net Income 21,200 21,200 56,000 56,000 58,500 58,500 Instructions

(a) Prepare an income statement, a retained earnings statement, and a classified balance sheet.

(b) Prepare the closing entries.

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

(d) Prepare a post-closing trial balance.