Account Titles

Debit

$

Credit

$

Office equipment

84,000

Building

115,000

Delivery van

25,000

Cash at bank

35,000

Accounts Receivable

52,000

Accounts Payable

40,000

5-Year Bank Loan

57,000

Service Revenue

63,000

Rent income

9,000

Interest expenses

3,200

Salary expenses

24,000

Commission expense

9,200

Repairs and maintenance

2,500

Advertising

7,100

Capital

188,000

Total

357,000

357,000

Additional Information:

Salaries unpaid at the end of the year amounted to $425.

Interest on 5-Year Bank Loan is yet to be recorded. This loan was taken by the business on January 1, 2021 with an annual interest rate of 4%.

Useful life of Office Equipment is 10 years; Building is expected to be useful for 20 years, and remaining useful life of Delivery Van is 15 years. There will be no scrap value at the end of these assets' useful life. Annual depreciation for all of these fixed assets needs to be recorded on December 31, 2021.

During the last week of December 2021, services of $850 were provided on account. However, those customers were not billed yet.

Required:

Prepare a ten-column worksheet for the year ended 31st December 2021. [24 points]

Record closing entries for the year ended 31st December 2021. [6 points]