Financial Statements and Closing Entries Last Chance Company offers legal consulting advice to prison inmates. Last Chance prepared the end-of-period spreadsheet that follows at June 30, 2018, the end of the fiscal year. Last Chance Company End-of-Period Spreadsheet For the Year Ended June 30, 2018 Unadjusted Adjusted Trial Balance Adjustments Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 5,100 22,750 Accounts Receivable (a) 3,750 Prepaid Insurance 3,600 (b) (c) 1,300 1,500 5,100 26,500 2,300 525 80,000 Supplies 2,025 Land 80,000 Building 340,000 340,000 190,000 (d) 3,000 193,000 140,000 140,000 (e) 4,550 54,450 9,750 59,000 9,750 Accum. Depr.-Building Equipment Accum. Depr.-Equipment Accounts Payable Salaries & Wages Payable Unearned Rent Common Stock Retained Earnings Dividends (f) 1,900 (9) 3,000 4,500 90,000 271,300 1,900 1,500 90,000 271,300 20,000 20,000 Fees Earned 280,000 (a) (9) 3,750 3,000 283,750 3,000 Rent Revenue Rent Revenue (9) 3,000 3,000 1,900 145,100 86,800 30,000 Salaries & Wages Expense Advertising Expense Utilities Expense Travel Expense Depr. Exp.-Equipment Depr. Exp.-Building Supplies Expense 147,000 86,800 30,000 18,750 18,750 4,550 4,550 (c) (b) 3,000 1,500 1,300 3,000 1,500 1,300 Insurance Expense Misc. Expense 5,875 5,875 900,000 900,000 19,000 19,000 913,200 913,200 Required: 1. Prepare an income statement for the year ended June 30. Last Chance Company Income Statement For the Year Ended June 30, 2018 Revenues: Fees earned Rent revenue Total revenues Expenses: Salaries and wages expense Advertising expense Utilities expense Travel expense Depreciation expense-equipment Depreciation expense-building Supplies expense 1100 Insurance expense Miscellaneous expense Total expenses Net loss Feedback Check My Work The income statement is prepared directly from the information that would be transferred to t listed last, regardless of its amount. Learning Objective 1. Learning Objective 2 and Learning Objective 3. 2. Prepare a retained earnings statement for the year ended June 30. Last Chance Company Retained Earnings Statement For the Year Ended June 30, 2018 Retained earnings, July 1, 2017 Net loss Dividends Change in retained earnings Retained earnings, June 30, 2018 Feedback 3. Prepare a balance sheet as of June 30. Last Chance Company Balance Sheet June 30, 2018 Assets Current assets: Cash Accounts receivable Prepaid Insurance Supplies Total current assets Property, plant, and equipment: Land 0 0 1000 Building Accumulated depreciation-building Book value-building Equipment Accumulated depreciation equipment Book value-equipment Total property, plant, and equipment Total assets Llabilities Current liabilities: Accounts payable Salaries and wages payable 000 Unearned rent Unearned rent Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Feedback 4. On the basis of the end-of-period spreadsheet, journalize the closing entries. For a compound transaction, if a box does not require an entry, leave it blank. 2018 Jun. 30 Close revenues Fees Earned Rent Revenue Income Summary 2018 Jun. 30 Close expenses Income Summary Salaries and Wages Expense Advertising Expense INI 1111111111 1101 Utilities Expense Travel Expense Depreciation Expense-Equipment Depreciation Expense-Building Supplies Expense Insurance Expense Miscellaneous Expense 2018 Jun. 30 Close Income/loss Retained Earnings Income Summary 2018 Jun. 30 Close dividends Retained Earnings Dividends Feedback 5. Prepare a post-closing trial balance. List the accounts as: Assets, Liabilities, Capital, Dividends, Revenue and Expenses. If a box does not require an entry, leave it blank. Last Chance Company Post-Closing Trial Balance June 30, 2018 Debit Balances Credit Balances Cash Accounts receivable Prepaid Insurance Supplies Land Building Accumulated depreciation-building Equipment Accumulated depreciation equipment Accounts payable Salaries and wages payable Unearned rent 5. Prepare a post-closing trial balance. List the accounts as: Assets, Liabilities, Capital, Dividends, Revenue and Expenses. If a box does not require an entry, leave it blank. Last Chance Company Post-Closing Trial Balance June 30, 2018 Debit Balances Credit Balances Cash Accounts receivable Prepaid insurance Supplies Land Building Accumulated depreciation-building Equipment Accumulated depreciation equipment Accounts payable Salaries and wages payable Unearned rent Common stock Retained earnings