Fred Schwartz Dance Studio, Inc. adjusts its accounts monthly . This is the studios unadjusted trial balance
Question:
Fred Schwartz Dance Studio, Inc. adjusts its accounts monthly. This is the studios unadjusted trial balance dated December 31, 2002.
FRED SCHWARTZ DANCE STUDIO, INC.
Trial Balance
December 31, 2002
Debits Credits
Cash....................................................................................... $ 10,800
Clients fees receivable.......................................................... 58,000
Supplies.................................................................................. 7,000
Prepaid studio rent................................................................. 5,000
Studio equipment................................................................... 96,000
Accumulated depreciation: studio equipment....................... $ 45,000
Accounts payable................................................................... 7,000
Notes payable........................................................................ 25,000
Interest payable...................................................................... 500
Unearned client fees.............................................................. 10,000
Income taxes payable............................................................. 3,000
Capital stock.......................................................................... 70,000
Client fees earned.................................................................. 87,000
Supply expense...................................................................... 6,000
Salary expense....................................................................... 19,000
Interest expense .................................................................... 500
Studio rent expense............................................................... 26,000
Utilities expense..................................................................... 4,200
Depreciation expense: studio equipment............................... 9,000
Income taxes expense............................................................ 6,000 ________
$247,500 $247,500
Other data
- Supplies on hand at December 31, 2002, total $2,500.
- The studio pays rent quarterly (every 3 months). The last payment was made November 1, 2002. The next payment will be made early in February 2003.
- Studio equipment is being depreciated over 96 months (8 years).
- $250 Interest is yet to be paid.
- At December 31, 2002, $4,000 of previously unearned client fees had been earned.
- Accrued, but unrecorded and uncollected client fees earned total $700 at Dec 31
- Accrued, but unrecorded and unpaid salary expense totals $900 at December 31.
Required: 1) Prepare a 10-column work sheet utilizing the trial balance and adjustments shown above. .2) Also adjusting and closing entries
Expert Answer:
