1. Prepaid expense 2. Unearned income 3. Accrued revenue 4. Preceding entry 5. Succeeding entry BALANCE SHEET As of Dec 31, 2013 Assets: Cash Accounts receivable 3000 Supplies Auto 100,000 Accum depreciation 40, 000 Liabilities and owner's equity Notes payable Wages payable 70,000 35,000 5,000 40,000 50,000 Total liabilities Common stock Retained earnings Total assets 117,000 27,000 Total liabilities and owner's equity 117,000 2014 TRANSACTIONS 1. Invested additional $50,000. 2. Paid accrued wages from prior year. 3. Received cash rental income of $500,000. 4. Purchased supplies for $ 4000 paying cash. 5. Paid salaries of $30,000. 6. Supplies on hand $1000. 7. Accrued salaries at end of year totaled $10,000. 8. Paid principal of $30,000 plus interest of S 5000 on note. 9. Record depreciation on car for year 4.The car was worth 100,000 when it was bought and has a five year useful life. 10. Paid dividend of $ 5000. 11. Received cash for services to be rendered in the future $6,000. 12. Purchased 1 year insurance policy on Oct 1 paying $24,000. 13. Record expired insurance on December 31. 1. Journalize each entry 2. Post to ledger 3. Post to trial balance 4. Prepare income statement 5. Prepare statement of retained earnings 6. Prepare balance sheet 7. Prepare closing entries and statement of cash flow 75 | Page