Question
Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted trial balance as of December 31, 2024, appears
Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted trial balance as of December 31, 2024, appears below. December 31 is the company's fiscal year-end. Accounts Cash Accounts Receivable Interest Receivable Supplies Prepaid Rent Land Notes Receivable Accounts Payable Salaries Payable Deferred Revenue Utilities Payable Retained Earnings Common Stock Service Revenue Interest Revenue Salaries Expense Rent Expense Supplies Expense Utilities Expense Totals Debits $ 48,300 Credits 13,300 0 5,800 11,000 116,000 58,000 $ 13,400 0 7,200 0 166,400 25,400 80,200 0 34,000 0 0 6,200 $ 292,600 $ 292,600 In addition, the company had the following year-end adjusting entries. Transaction Accounts Title a. Salaries Expense Salaries Payable Debits Credits 4,000 4,000 b. Interest Receivable 2,700 Interest Revenue 2,700 C. Supplies Expense 3,200 Supplies 3,200 d. Deferred Revenue 5,200 Service Revenue 5,200 e. Rent Expense 7,300 Prepaid Rent 7,300 f. Utilities Expense 2,100 Utilities Payable 2,100 Required: 1., 2. & 6. Enter the unadjusted balances from the trial balance and post the adjusting entries to the T-accounts, and post the closing entries to the T-accounts. 3. Prepare an adjusted trial balance. 4. Prepare an income statement, statement of stockholders' equity, and classified balance sheet for the year ended December 31, 2024. 5. Record closing entries. 7. Prepare a post-closing trial balance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started