Integrative Exercise 01 The Accounting Cycle Begin with the following account balances for University Street Parking Garage (assume all accounts have normal balances) at December 31, 2019 Accounts payable $16,700 Accounts receivable 39,200 Accumulated depreciation (equipment) 36,800 Cash 6,700 Common stock (20,000 shares) 100,000 Depreciation expense (equipment) 12,300 Dividends 6,300 Equipment 269,500 Income taxes expense 2,700 Income taxes payable 1,100 Interest expense 16,500 Interest payable 0 Interest income 4,100 Inventory 4,900 Investments 35,000 Notes payable (due May 2, 2025) 160,000 Prepaid rent (4 months) 36,400 Rent expense 94,400 Retained earnings, 12/31/2018 43,000 Service revenue, parking 224,600 Service revenue, repair 208,100 Supplies expense 36,900 Wages expense 233,600 Wages payable 0 1. For the following transactions, provide the necessary adjusting entries and update the account balances to appropriately reflect these adjusting entries: a. University Street Parking rents space that requires a rental payment of $9,100 per month. University Street Parking has prepaid rent through March 31, 2020. b. At December 31, 2019, University Street Parking owes employees wages of $12,500. C. University Street Parking should have total depreciation expense on equipment for 2019 of $14,300. d. The note payable of $160,000 has an interest rate of 6.75%. University Street Parking has paid interest through October 31, 2019. a. o (Adjust rent) b. (Adjust wages) C. (Record depreciation) d. o o (Record interest) 2. Prepare a properly classified income statement for 2019 using the post-adjustment account balances. University Street Parking Garage Income Statement For the Year Ended December 31, 2019 Total revenue Operating expenses: Total operating expenses Other income (expense): Total other income (expense) Prepare a properly classified retained earnings statement for 2019 using the post-adjustment account balances. University Street Parking Garage Retained Earnings Statement For the Year Ended December 31, 2019 Prepare a properly classified balance sheet as of December 31, 2019 using the post-adjustment account balances. University Street Parking Garage Balance Sheet December 31, 2019 Assets Current assets: Total current assets Total assets Liabilities and Stockholders' Equity Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Stockholders equity! Total stockholders' equity Total liabilities and stockholders' equity