P4-28 The adjusted trial balance columns of the worksheet for Bleecker Street, Ltd., balance. owned by Raymond Pearson, are as follows.

(LO 1, 2, 3, 6)

208 4 Completing the Accounting Cycle

BLEECKER STREET, LTD. Worksheet For the Year Ended December 31, 2017

Adjusted Trial Balance

Account

No.

Account Titles

Dr.

Cr

101

Cash

5,300

112

Accounts Receivable

10,800

126

Supplies

1,500

130

Prepaid Insurance

2,000

157

Equipment

27,000

158

Accumulated Depreciation Equipment

5,600

200

Notes Payable

15,000

201

Accounts Payable

4,600

212

Salaries and Wages Payable

2,400

230

Interest Payable

600

311

Share Capital-Ordinary

10,000

320

Retained Earnings

4,200

332

Dividends

5,000

400

Service Revenue

59,000

610

Advertising Expense

8,400

631

Supplies Expense

4,000

711

Depreciation Expense

5,600

722

Insurance Expense

3,200

726

Salaries and Wages Expense

28,000

905

Interest Expense

600

Totals

101,400

101,400

(a) Net income £9,200 (b) Current assets £19,600; Current liabilities £10,600

(e) Post-closing trial balance £46,600

Instructions

( (b) Prepare an income statement, a retained earnings statement, and a classified state- ment of financial position (amounts in British pounds). (Note: £3,000 of the notes

a) Complete the worksheet by extending the balances to the financial statement columns.

payable become due in 2018.) (c) Prepare the closing entries. Use J14 for the journal page.

(d) Post the closing entries. Use the three-column form of account. Income Summary is No. 350.

(e) Prepare a post-closing trial balance.