THE WORKSHEET, FINANCIAL STATEMENTS, AND CLOSING ENTRIES. Flint, Inc., operates a cable television system. At December 31, 19x4, the following unadjusted account balances were available: lol

The following data are available for adjustments:

a) At year-end $1,500 worth of office supplies remains unused.

b) The building is being depreciated over 10 years, with a residual value of $9,000.

c) The expected life of the equipment is 5 years. Residual value is $44,000.

d) The interest rate on the note is 9%. Four months’ interest is unpaid and unrecorded at December 31, 19x4.

e) At December 31, 19x4, service revenue of $94,000 has been earned but is unbilled and unrecorded.

f) Utility bills of $2,800 are unpaid and unrecorded at December 31, 19x4.
g) The income tax rate is 25%.
REQUIRED:
. Prepare a worksheet for Flint.
. Prepare a classified income statement.
. Prepare a statement of changes in retained earnings.
. Prepare the closing entries.
. Prepare a classified balance sheet.

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Cash Accounts receivable Office supplies inventory Land Building Accumulated depreciation, building Equipment 2,000 89,000 5,000 37,000 209,000 40,000 794,000 Accumulated depreciation, equipment 262,000 Other assets 19,700 Accounts payable 29,500 Notes payable (due in 19x8) 250,000 Capital stock 300,000 Retained earnings, 12/31/x3 14,700 Dividends 28,000 Service revenue 985,000 Subscription expense 398,000 Telephone expense 10,500 Utilities expense. 34,000 Wages expense 196,000 Miscellaneous expense 44,000 Interest expense 15,000