Elliot Carver is the CEO of Carver Media, Inc. The companys fiscal year ends on June 30. His accountant, Henry Gupta, was recently killed during a shootout with British and Chinese international spies. Unfortunately, Henry was in the midst of closing the books when the shootout occurred and Elliot can only find partial information for the year just ended. You have been hired to complete the accounting work using the information that Elliot was able to find.

A partial worksheet, consisting of a trial balance and an adjusted trial balance for June 30, is shown below.

Additional information

$9,000 of the long term debt is due to be repaid in the upcoming fiscal year.

Carver issued stock to a new investor who contributed equipment to the company rather than investing cash. The fair value of the contributed equipment was $25,000.

One of Carvers loans requires a $10,000 cash interest payment to be made each June 30.

Carver prepays insurance and maintenance expenses at the beginning of each fiscal year.

Carver purchases all of its inventory on credit.

Required:

Prepare a complete worksheet showing all adjustments, as well as effects on income statement and balance sheet accounts. Your textbook contains a section on worksheets if you need guidance.

Write the adjusting journal entries, using your completed worksheet as a basis.

Prepare an income statement.

Prepare a classified balance sheet.

Write the closing journal entries.

Prepare a post-closing trial balance.