110 X x Income statement A Garden Wizards provides gardening services to both commercial and residential customers. The company performs adjusting entries on a monthly basis, whereas closing entries are prepared annually at December 31. An adjusted trial balance dated December 31, 2015, follows. GARDEN WIZARDS ADJUSTED TRIAL BALANCE DECEMBER 31, 2015 Debits Credits $ 27.800 8,700 3.200 1,400 140,000 $75.000 20.000 14,000 2.200 30.000 Cash.. Accounts receivable Unexpired insurance Prepaid rent Supple. Trucks.... Accumulated depreciation: truck Equipment Accumulated depreciation equip Accounts payable Notes payable Salarice payable.. Interest payable Income taxe payable Uneored service nu Capital stock Retained wings Didende Service revenue med Insurance expone... Officerent expense Supplies expense. Salary expense. Depreciation expense trucks Depreciation expense equipment Repair and maintenance expens Fuel expense. ***** Miscellaneous expense. Interest expense... Income taxe penge. 1,700 2.000 18.000 21.000 S1300 104.000 1.800 28,000 5.000 72.000 16.000 2.200 2.700 9,000 $367,100 Instructions a. Prepare an income statement and statement of retained earings for the year ondod December 31, 2015. Also prepare the company's balance sheet dated December 31, 2015 b. Prepare the necessary year and closing entries c. Prepare an after closing trial balance d. Using the financial statements prepared in part a, briefly evaluate the company's profitability and liquidity Pb 4.58 PB5.2B Hoja3 Circular References: P25 = General 2 Wrap Text Merge & Centre kg % 9 . ne statement Conditional Format Formatting as Table Call Styles Delete- Format GARDEN WIZARDS ADJUSTED TRIAL BALANCE DECEMBER Credits 27800 4300 8700 3200 1400 140000 2200 310 11000 310 28405 Assets -1800 Cash -28000 Accounts receivable 5600 Unexpired insurance -72000 Prepaid rent - 16000 Supplies 4000 Trucks -5300 Accumulated depreciation trucks -2200 Equipment -2700 Accumulated depreciation equipment 1010 Incomentatement Service revenues earned Insurance expense Officerent expense Supplies expense Salary expense Depreciation expense: trucks Depreciation expense equipment Repair and maintenance expense Fuel expense Miscellaneous expense interest expense income taxes pense Net Income Net profit margin 10 Nos payable 8700 is payable 3200 worst payable 1400 income ta b le 1605 Ured service 75000 75000 7000110 28000 310 Accounts receivable Unexpired insurance Prepaid rent Supplies Trucks Accumulated depreciation: trucks Equipment Accumulated depreciation equipment Accounts payable Notes payable Salaries payable Interest payable Income taxes payable Unearned service revenue Capital stock Retained earnings Dividends Service revenues earned Insurance expense Office rent expense Supplies expense Salary expense Depreciation expenses trucks Depreciation expenses equipment Repair and maintenance expense Fuel expense Miscellaneous expense interest expense ncome taxes pense 14000 2200 38000 900 300 1700 2000 18000 21000 18000 310 61300 310 3300 Statement of retained earnings Retained earnings start of year Net Income Dividends Retained earnings close of wear 21000 Current ratio: 43600 Working capital -3100 Debt ratio 194000 1800 28000 5600 72000 16000 4000 5300 2200 2700 367100167100 Delete Merge & Centre % 9 Conditional Format attina a Table Cell Styles sont a Formal 27800 Accounts payable 4300 Notes payable 8700 Salaries payable 3200 Interest payable 1400 Income taxes payable 15405 Uneared service revenue 75000 28000 140000 75000 Closing entries Aer close trebalonce Date Account Debit Credit Accounts 2200 31 Dec Service revenues earned 2405 Cash 38000 31 Dec Income 2.05 Accounts receivable 900 31 Dec Income summary 2E405 Unexpired insurance 300 31 Dec Insurance expense 1800 Prepaid rent 1700 31 Dec Office rent expense 28000 Supplies 2000 31 Dec Supplies expense S600 Trucks 31 Dec Salary expense 72000 Accumulated depreciation: trucks 31 Dec Depreciation expense trucks 16000 vipment 31 Dec Depreciation expense equipment 4000 Accumulated depreciation equipment 31 Dec Repair and maintenance expense S300 Accounts payable 18000 31 Dec Fuel expense 2200 Notes payable 61300 31 Dec Miscellaneous pense 2700 Series payable 31 Dec Interest expense 3800 Interest payable 1E05 31 Dec income taxes expense 9000 Income tax payable 31 Dec income summary 43600 Unearned service revenue 31 Dec Retained earnings 43600 Capital stock 31 Dec Retained earning 3300 Retained earnings 31 Dec Dividends 3300 Total 38000 Equity Capital stock Retained earnings 11.05 0 2000 18000 61300 124400 38300 313 110 X x Income statement A Garden Wizards provides gardening services to both commercial and residential customers. The company performs adjusting entries on a monthly basis, whereas closing entries are prepared annually at December 31. An adjusted trial balance dated December 31, 2015, follows. GARDEN WIZARDS ADJUSTED TRIAL BALANCE DECEMBER 31, 2015 Debits Credits $ 27.800 8,700 3.200 1,400 140,000 $75.000 20.000 14,000 2.200 30.000 Cash.. Accounts receivable Unexpired insurance Prepaid rent Supple. Trucks.... Accumulated depreciation: truck Equipment Accumulated depreciation equip Accounts payable Notes payable Salarice payable.. Interest payable Income taxe payable Uneored service nu Capital stock Retained wings Didende Service revenue med Insurance expone... Officerent expense Supplies expense. Salary expense. Depreciation expense trucks Depreciation expense equipment Repair and maintenance expens Fuel expense. ***** Miscellaneous expense. Interest expense... Income taxe penge. 1,700 2.000 18.000 21.000 S1300 104.000 1.800 28,000 5.000 72.000 16.000 2.200 2.700 9,000 $367,100 Instructions a. Prepare an income statement and statement of retained earings for the year ondod December 31, 2015. Also prepare the company's balance sheet dated December 31, 2015 b. Prepare the necessary year and closing entries c. Prepare an after closing trial balance d. Using the financial statements prepared in part a, briefly evaluate the company's profitability and liquidity Pb 4.58 PB5.2B Hoja3 Circular References: P25 = General 2 Wrap Text Merge & Centre kg % 9 . ne statement Conditional Format Formatting as Table Call Styles Delete- Format GARDEN WIZARDS ADJUSTED TRIAL BALANCE DECEMBER Credits 27800 4300 8700 3200 1400 140000 2200 310 11000 310 28405 Assets -1800 Cash -28000 Accounts receivable 5600 Unexpired insurance -72000 Prepaid rent - 16000 Supplies 4000 Trucks -5300 Accumulated depreciation trucks -2200 Equipment -2700 Accumulated depreciation equipment 1010 Incomentatement Service revenues earned Insurance expense Officerent expense Supplies expense Salary expense Depreciation expense: trucks Depreciation expense equipment Repair and maintenance expense Fuel expense Miscellaneous expense interest expense income taxes pense Net Income Net profit margin 10 Nos payable 8700 is payable 3200 worst payable 1400 income ta b le 1605 Ured service 75000 75000 7000110 28000 310 Accounts receivable Unexpired insurance Prepaid rent Supplies Trucks Accumulated depreciation: trucks Equipment Accumulated depreciation equipment Accounts payable Notes payable Salaries payable Interest payable Income taxes payable Unearned service revenue Capital stock Retained earnings Dividends Service revenues earned Insurance expense Office rent expense Supplies expense Salary expense Depreciation expenses trucks Depreciation expenses equipment Repair and maintenance expense Fuel expense Miscellaneous expense interest expense ncome taxes pense 14000 2200 38000 900 300 1700 2000 18000 21000 18000 310 61300 310 3300 Statement of retained earnings Retained earnings start of year Net Income Dividends Retained earnings close of wear 21000 Current ratio: 43600 Working capital -3100 Debt ratio 194000 1800 28000 5600 72000 16000 4000 5300 2200 2700 367100167100 Delete Merge & Centre % 9 Conditional Format attina a Table Cell Styles sont a Formal 27800 Accounts payable 4300 Notes payable 8700 Salaries payable 3200 Interest payable 1400 Income taxes payable 15405 Uneared service revenue 75000 28000 140000 75000 Closing entries Aer close trebalonce Date Account Debit Credit Accounts 2200 31 Dec Service revenues earned 2405 Cash 38000 31 Dec Income 2.05 Accounts receivable 900 31 Dec Income summary 2E405 Unexpired insurance 300 31 Dec Insurance expense 1800 Prepaid rent 1700 31 Dec Office rent expense 28000 Supplies 2000 31 Dec Supplies expense S600 Trucks 31 Dec Salary expense 72000 Accumulated depreciation: trucks 31 Dec Depreciation expense trucks 16000 vipment 31 Dec Depreciation expense equipment 4000 Accumulated depreciation equipment 31 Dec Repair and maintenance expense S300 Accounts payable 18000 31 Dec Fuel expense 2200 Notes payable 61300 31 Dec Miscellaneous pense 2700 Series payable 31 Dec Interest expense 3800 Interest payable 1E05 31 Dec income taxes expense 9000 Income tax payable 31 Dec income summary 43600 Unearned service revenue 31 Dec Retained earnings 43600 Capital stock 31 Dec Retained earning 3300 Retained earnings 31 Dec Dividends 3300 Total 38000 Equity Capital stock Retained earnings 11.05 0 2000 18000 61300 124400 38300 313