Question
Case 3 Mei-ling had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Mei-ling
Case 3
Mei-ling had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Mei-ling prepared the following adjusted trial balance.
Matcha Creations
Adjusted Trial Balance
December 31, 2021
DebitCredit
CashNT$1,180
Accounts Receivable875
Supplies350
Prepaid Insurance1,210
Equipment1,200
Accumulated Depreciation-EquipmentNT$40
Accounts Payable75
Salaries and Wages Payable56
Unearned Service Revenue300
Interest Payable15
Notes Payable2,000
Share CapitalOrdinary800
Dividends500
Service Revenue4,515
Salaries and Wages Expense1,006
Utilities Expense125
Advertising Expense165
Supplies Expense1,025
Depreciation Expense40
Insurance Expense110
Interest Expense15
NT$7,801NT$7,801
Instructions
Using the information in the adjusted trial balance, do the following.
(a)Prepare an income statement and a retained earnings statement for the two months ended December 31, 2021, and a classified statement of financial position at December 31, 2021. The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2023.
(b)Mei-ling has decided that her year-end will be December 31. Prepare closing entries as of December 31, 2021.
(c)Prepare a post-closing trial balance.
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