1.Given the adjusted trial balance for Rockford Shoes,

prepare (in proper format) the income statement (10 marks) and statement of changes in equity (5 marks) for the year ended 30 September 20X9. There were no owner investments during the year.

Record the relevant closing entries. (4 marks)

Rockford Shoes

Adjusted Trial Balance

30 September 20X9

DebitCredit

Cash at bank$ 15,000

Accounts receivable30,000

Supplies3,200

Prepaid insurance7,500

Land40,000

Building160,000

Accum. depreciation-building$ 12,000

Equipment75,000

Accum. depreciation-equipment8,500

Accounts payable12,000

Salary payable2,000

Unearned service revenue25,000

Mortgage payable100,000

Susan Dillard capital60,000

Susan Dillard, drawings23,000

Service revenue257,200

Salary expense65,000

Electricity expense24,000

Insurance expense13,000

Depreciation expense-building9,000

Depreciation expense-equipment3,000

Supplies expense9,000________

Total $476,700$476,700