Farmer Investment Advisers Unadjusted Trial Balance December 31, 2018 Balance Account Title Debit Credit Cash 33,000 Accounts Receivable 50,000 Office Supplies 3,000 Equipment 23,000 Accumulated Depreciation-Equipment $ 10,000 Accounts Payable 17,000 Salaries Payable 0 Unearned Revenue 4,000 Notes Payable (long-term) 24,000 Farmer, Capital 55,000 Farmer, Withdrawals 28,000 89,000 Service Revenue Insurance Expense 6,000 Salaries Expense 34,000 Supplies Expense 0 Interest Expense 9,000 Rent Expense 13,000 0 Depreciation Expense-Equipment $ 199,000 $ 199,000 Total i More Info Unearned Revenue earned during the year, $100 Office Supplies on hand, $1,000 Depreciation for the year, $9,000. . b. C. Accrued Salaries Expense, $6,000 d. Accrued Service Revenue, $4,000. . 1. Prepare a worksheet for Farmer Investment Advisers at December 31, 2018 2. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in account format. Assume there were no contributions made by the owner during the year 3. Prepare closing entries. ct. Account A/R Accounts Receivable Supp Supplies A/D-Equip Accumulated Depreciation-Equipment Accounts Payable A/P ay. Payable Unearn. Rev. Unearned Revenue N/P (It) Notes Payable (long-term) Capital . Withdrawals W/D Rev. Revenue Ins. Exp Insurance Expense Exp Expense Depr. Exp Depreciation Expense-Equipment Farmer Investment Advisers Worksheet December 31, 2018 Unadjusted Adjusted Income Balance Trial Balance Adjustments Trial Balance Statement Sheet Debit Credit Acct. Title Credit Debit Credit Debit Debit Credit Debit Credit 33,000 Cash 50,000 A/R Office Supp 3,000 23,000 Equipment 10,000 A/D-Equip. 17,000 A/P Salaries Pay. 4,000 24,000 Unearn. Rev N/P (I/t) Farmer, Cap 55,000 28,000 Farmer, W/D 89,000 Service Rev Ins. Exp 6,000 34,000 Salaries Exp. Supplies Exp. Interest Exp 9,000 13,000 Rent Exp Depr. Exp 199,000 199,000 Total Net income or loss Requirement 2. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in account format. Assume there were no contributions made by the owner during the year. Begin by preparing the income statement. Review the Income Statement columns of the worksheet completed in Requirement 1 Farmer Investment Advisers Income Statement Year Ended December 31, 2018 Net Income (Loss) Prepare the statement of owner's equity. Assume that there were no contributions made by the owner during the year. Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. (Exclude any zero-balance events for the period from the statement of owner's equity.) Review the Balance Sheet columns of the worksheet completed in Requirement 1 Farmer Investment Advisers Statement of Owner's Equity Year Ended December 31, 2018 Farmer, Capital, January 1, 2018 Farmer, Capital, December 31, 2018 Review the Balance Sheet columns of the worksheet completed in Requirement 1 Review the Statement of Owner's Equity completed above. Farmer Investment Advisers Balance Sheet December 31, 2018 Assets Liabilities Owner's Equity Less: Requirement 3. Prepare closing entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Start by closing revenues. Review the Income Statement columns of the worksheet completed in Requirement 1 Accounts and Explanation Date Debit Credit Dec. 31 Clos. (1) Close expenses for the period Review the Income Statement columns of the worksheet completed in Requirement 1. Accounts and Explanation Date Debit Credit Dec. 31 Clos. (2) Close Income Summary Review the Income Statement columns of the worksheet completed in Requirement 1 Accounts and Explanation Date Debit Credit Dec. 31 Clos. (3) Close withdrawals. Review the Balance Sheet columns of the worksheet completed in Requirement 1 Accounts and Explanation Date Debit Credit Dec. 31 Clos. (4) Close Income Summary Review the Income Statement columns of the worksheet completed in Requirement 1 Accounts and Explanation Date Debit Credit Dec. 31 Clos. (3) Close withdrawals. Review the Balance Sheet columns of the worksheet completed in Requirement 1 Accounts and Explanation Date Debit Credit Dec. 31 Clos. (4)
