The following trial balance and additional data are for Roswell Interior Decorators, Inc.:

1. Supplies on hand at December 31,1999 , are \(\$ 1,000\).
2. Rent expense for 1999 is \(\$ 10,000\).
3. Advertising expense for 1999 is \(\$ 2,304\).
4. Insurance expense for 1999 is \(\$ 2,400\).
5. Depreciation expense is office equipment, \(\$ 912\), and office furniture, \(\$ 3,000\).
6. Accrued interest on notes payable is \(\$ 150\).
7. Accrued salaries are \(\$ 4,200\).

a. Prepare a 12-column work sheet for the year ended December 31, 1999. You need not include account numbers or explanations of adjustments.

b. Prepare an income statement.

c. Prepare a statement of retained earnings.

d. Prepare a classified balance sheet.

e. Prepare adjusting and closing entries.

Transcribed Image Text:

Cash Accounts Receivable. Supplies on Hand Prepaid Rent Prepaid Advertising ROSWELL INTERIOR DECORATORS, INC. Trial Balance December 31, 1999 Prepaid Insurance Office Equipment Accumulated Depreciation-Office Equipment Office Furniture. Accumulated Depreciation-Office Furniture Accounts Payable. .. Notes Payable (due 2000) Capital Stock Retained Earnings, January 1, 1999 Dividends Service Revenue Salaries Expense Utilities Expense Miscellaneous Expense Debits Credits $ 85,400 81,600 4,000 12.240 2,880 4,400 7,600 $ 2,760 29,200 8,280 25,200 4,000 100,000 22,400 42,520 250,000 98,800 20,000 24,000 $412,640 $412,640