1. Complete the worksheet for Garner Management Service. You will need to complete columns (G, I, O, Q, S & U). Use tab Worksheet.

2. Prepare the end-of-year adjusting journal entries using the adjusted trial-balance as the base. Use tab Adjusting Entries.

3. Using the completed worksheet from step #1, prepare the following financial statements:

   • Income Statement. Use tab Income Statement.

   • Statement of retained earnings (the beginning balance was $42,000). Use tab

     Retained earning.

   • A classified Balance Sheet. (Note: $25,000 of the mortgage payable is due for payment next year). Use tab Balance Sheet.

4. Journalize the closing entries. Use tab Closing Entries.

5. Prepare the post-closing trial balance. Use tab Post Closing Trial Balance.

6. Prepare the following rations ratios: (Use tab Ratios).

   1. Current Ratio

   2. Working Capital

   3. Debt Ratio

   4. Accounts Receivable Turnover

   5. Deb Equity

   6. Return on total assets

Additional information:

• The ending balance for the total assets for 2013 was $375,950.

• During 2014 only service revenue was 100% on credit and rent revenue was on cash.

• The ending balance for accounts receivable for 2013 was $50,500.

GARNER MANAGEMENT SERVICES, INC.
Worksheet
For the Year Ended December 31, 2014
										Adjusted				Income
Account Titles		Trial Balance				Adjustments				Trial Balance				Statement				Balance Sheet
		Dr.		Cr.		Dr.		Cr.		Dr.		Cr.		Dr.		Cr.		Dr.		Cr.
Cash		14,000								14,000
Accounts Receivable		30,300								30,300
Prepaid Insurance		3,000								2,000
Land		77,000								77,000
Buildings		126,000								126,000
Equipment		58,000								58,000
Accounts Payable				12,700								12,700
Unearned Rent Revenue				5,400								2,500
Mortgage Payable				122,000								122,000
Common Stock				110,000								110,000
Retained Earnings				42,000								42,000
Dividends		21,000								21,000
Service Revenue				88,700								88,700
Rent Revenue				27,500								30,400
Salaries and Wages Expense		41,000								41,000
Advertising Expense		20,000								20,000
Utilities Expense		18,000								18,000
Totals		408,300		408,300
Insurance Expense										1,000
Depr. Expense										7,000
Accum. Depr.Buildings												2,500
Accum. Depr.Equipment												4,500
Interest Expense										9,000
Interest Payable												9,000
Totals										424,300		424,300
Net Income
Totals

GARNER MANAGEMENT SERVICE, INC.
Closing Journal Entries
Date	Account Name		Debit	Credit

GARNER MANAGEMENT SERVICES INC.
Income Statement
For the Year Ending December 31, 2014

GARNER MANAGEMENT SERVICES INC.
Statement of Retained Earnings
For the Year Ending December 31, 2014
Retained earnings , Beg. Balance				$ -

GARNER MANAGEMENT SERVICES INC.
Income Statement
For the Year Ending December 31, 2014
Assets

GARNER MANAGEMENT SERVICE, INC.
Closing Journal Entries
Date	Account Name		Debit	Credit

GARNER MANAGEMENT SERVICES INC.
Post-Closing Trial Balance
December 31, 2014
		Debit	Credit

GARNER MANAGEMENT SERVICES INC.
Ratio Analysis
For 2014
Current Ratio
Working Capital
Debt Ratio
Accounts Receivable Turnover
Deb Equity
Return on total assets

Garner Management Service, Inc. has the following two trial balances (un-adjusted and adjusted) for the year ending December 31, 2014. The unadjusted trial balance was prepared before the adjusting entries were done. The columns on the right, include the effect of the adjusting entries. As an accountant for Garner Management Service, you been asked to complete the accounting cycle for this service provided company. You will be required to analyze the adjusted trial balance and determine what adjusting entries are required to go from the un-adjusted trial balance to the adjusted trial balance. Garner Management Services Inc. Worksheet For the Year Ended December 31, 2014 Cr. Account Titles Cash Accounts Receivable Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Retained Earnings Dividends Service Revenue Rent Revenue Salaries and Wages Expense Advertising Expense Utilities Expense Totals Trial Balance Dr. Cr. 14,000 30,300 3,000 77,000 126,000 58,000 12,700 5,400 122.000 110,000 42,000 21,000 88,700 27,500 41,000 20,000 18,000 408,300 408,300 Adjusted Trial Balance Dr. 14,000 30,300 2,000 77,000 126,000 58,000 12.700 2,500 122,000 110,000 42,000 21,000 88,700 30,400 41,000 20,000 18,000 1,000 7,000 Insurance Expense Depreciation Expense Accumulated Depreciation Buildings Accumulated Depreciation Equipment Interest Expense Interest Payable Totals 2,500 4,500 9,000 9,000 424,300 424,300