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700 6. Use the adjusted trial balance for Stockton Company to answer the questions that follow. Stockton Company Adjusted Trial Balance December 31 Account Debit

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700 6. Use the adjusted trial balance for Stockton Company to answer the questions that follow. Stockton Company Adjusted Trial Balance December 31 Account Debit Credit No. Balances Balances Cash 11 6,530 Accounts Receivable 12 2,100 Prepaid Expenses 13 Equipment 18 13,700 Accumulated Depreciation 19 1,100 Accounts Payable 21 1,900 Notes Payable 22 4,300 Bob Steely, Capital 31 12,940 Bob Steely, Drawing 32 790 Fees Earned 41 9,250 Wages Expense 51 2,500 Rent Expense 52 1,960 Utilities Expense 53 773 54 250 Depreciation Expense Miscellaneous Expense 59 185 29.490 29.490 Totals Use the adjusted trial balance to calculate the followings: A-B-C-D-E A Calculate the net income (loss) for the period B. Calculate the owner's equity ending balance. C. Calculate the total assets. D. Calculate the current assets. E Calculate the total liabilities for the period. 7. Describe the two closing entries steps. Ans: 8. A saumary of selected ledger accounts appears below for Alberto's Plumbing Services for the current calendar year-end Alberto, Capital 12/31 8,500 1/1 6,500 12/31 15,000 Alberto, Drawing 3,500 12/31 5,000 6/30 11/30 8,500 The net income for the period? Ans 9. Use the following end-of-period spreadsheet to answer the questions that follow: A-B-CD Finley Company End-of-Period Spreadsheet For the Year Ended December 31 Adjusted Trial Income Statement Balance Sheet Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 48,000 48,000 Accounts Receivable 18,000 18,000 Supplies 6,000 6,000 Equipment $7,000 57.000 Accumulated Depreciation 18.000 18,000 Accounts Payable 25,000 25,000 Wages Payable 6,000 6,000 To 25,000 25,000 6,000 6,000 33,000 33,000 Accounts Payable Wages Payable C. Finley, Capital C. Finley, Drawing Fees Eamed Wages Expense Rent Expense Depreciation Expense 3,000 3,000 155,000 155,000 63,000 27,000 63,000 27,000 15.000 237.000 237.000 155,000 15.000 105,000 50.000 155.000 132,000 Net income 82,000 50.000 132.000 155.000 132.000 A. The expenses will be closed by B. The entry to close C. Finley, Drawing would be Ans. B. The entry to close C. Finley, Drawing would be Ans. C. The first closing entry would be to: Ans. D. The ending balance in C. Finley, Capital is Ans. 10. Describe the differences between a service business and a retail business. Ans

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