Financial Accounting BMBA $140$ Assignment #$4$

Name $($first and last name$)$: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

PART I $$ Financial Statements $(42$ points$)$

Billy Bob Mechanical has come back in to discuss the company$$s financial statements. Your manager has requested that you assist in preparing the draft financial statements. The company has a year ending December $31,2020$ and we have the previously provided Adjusted Trial Balance.

Instructions: Please prepare draft financial statements based on the following adjusted Trial Balance. Please include an Income Statement, Statement of Owner$$s Equity and a Balance Sheet.

Please note that there are a few adjustments between the adjusted TB and previous week$$s$,$ there is no need to investigate these differences, please prepare financial statements based on the following:

Adjusted Trial Balance:

Account Number Account Name Debit Balance Credit Balance

$1000$ Cash $28,904$

$1010$ Accounts Receivable $7,899$

$1015$ Interest Receivable $200$

$1020$ Supplies $2,500$

$1030$ Prepaid Insurance $9,000$

$1040$ Truck $25,000$

$1045$ Accumulated Amortization $$ Truck $14,000$

$1050$ Equipment $15,000$

$1055$ Accumulated Amortization $$ Equipment $2,500$

$2000$ Accounts Payable $18,287$

$2010$ Salaries Payable $1,235$

$2020$ Line of Credit $6,750$

$2025$ Interest Payable $101$

$2030$ Unearned Revenue $4,300$

$3000$ Billy Bob, Capital $28,000$

$4000$ Services Revenue $110,289$

$4010$ Interest Revenue $2,424$

$5000$ Salary and Wages Expense $38,394$

$5010$ Supplies Expense $29,154$

$5020$ Insurance Expense $3,000$

$5030$ Amortization Expense $4,500$

$5040$ Advertising Expense $2,275$

$5050$ Rent Expense $15,500$

$5060$ Repairs Expense $3,700$

$5070$ Interest Expense $2,860$

Total Balance $$187,886$ $$187,866$

Templates:

Income Statement:

$($Company$)$

$($Statement$)$

$($Date$)$

Revenues

Total Revenue

Expenses

Profit$/$Loss

Statement of Owner$$s Equity:

$($Company$)$

$($Statement$)$

$($Date$)$

$($capital$)$

Balance Sheet:

$($Company$)$

$($Statement$)$

$($Date$)$

Assets

Current Assets

Total Current Assets

Property, plant and equipment

Total Assets

Liabilities and Owner$$s Equity

Current Liabilities

Total Current Liabilities

PART I $$ Closing Entries $(6$ points$)$

Instructions: Please prepare all the required closing journal entries using the existing accounts in the Adjusted Trial Balance Provided above:

Journal Entry Template:

Entry # Date Account Number Account Name Debit or Credit Amount

$1$

$2$

$3$