P4-3A The completed financial statement columns of the worksheet for Woods Company are shown below. WOODS COMPANY Worksheet For the Year Ended December 31, 2010 Income Statement Balance Sheet Acc. No. Account Titles Dr. Cr. Dr. Cr. 101 Cash 8,200 112 Accounts Receivable 7,500 130 Prepaid Insurance 1,800 157 Equipment 28,000 167 Accumulated Depreciation 8,600 201 Accounts Payable 11,700 212 Salaries Payable 3,000 301 S. Woods, Capital 34,000 306 S. Woods, Drawing 7,200 400 Service Revenue 44,000 622 Repair Expense 5,400 711 Depreciation Expense 2,800 722 Insurance Expense 1,200 726 Salaries Expense 35,200 732 Utilities Expense 4,000 Totals 48,600 44,000 52,700 57,300 Net Loss 4,600 4,600 48,600 48,600 57,300 57,300 Complete the income statement, owner's equity statement, and a classified balance sheet. S. Woods made an additional investment in the business of $4,000 during 2010. (List multiple entries from largest to smallest eg 10, 5, 3, 2. If a net loss, record amount using either a negative sign preceding the number eg -45 or parentheses eg (45). List assets in order of liquidity and liabilities from largest to smallest eg 10, 5, 3, 2.) WOODS COMPANY Income Statement December 31, 2010For the Year Ended December 31, 2010 Revenues Net lossDrawingsEquipmentS. Woods, CapitalRepair expensePrepaid insuranceAccounts receivableDepreciation expenseUtilities expenseSalaries expenseAccumulated depreciationSalaries payableInvestment by ownerCashService revenueAccounts payableInsurance expense $ Expenses Prepaid insuranceInsurance expenseAccounts receivableSalaries expenseEquipmentCashNet lossAccounts payableAccumulated depreciationSalaries payableS. Woods, CapitalDrawingsService revenueInvestment by ownerRepair expenseDepreciation expenseUtilities expense $ Accumulated depreciationUtilities expenseService revenueCashPrepaid insuranceDepreciation expenseEquipmentAccounts receivableAccounts payableDrawingsSalaries payableNet lossS. Woods, CapitalRepair expenseInvestment by ownerSalaries expenseInsurance expense Investment by ownerAccumulated depreciationService revenueInsurance expensePrepaid insuranceSalaries payableSalaries expenseAccounts payableRepair expenseNet lossDepreciation expenseAccounts receivableS. Woods, CapitalUtilities expenseDrawingsCashEquipment EquipmentSalaries expenseSalaries payableCashS. Woods, CapitalUtilities expenseInvestment by ownerService revenueDepreciation expenseAccounts receivablePrepaid insuranceNet lossInsurance expenseRepair expenseAccounts payableAccumulated depreciationDrawings Utilities expenseEquipmentPrepaid insuranceDepreciation expenseAccounts payableInvestment by ownerInsurance expenseRepair expenseSalaries expenseService revenueAccounts receivableDrawingsS. Woods, CapitalSalaries payableAccumulated depreciationCashNet loss Total expenses Net income (loss) $ WOODS COMPANY Owner's Equity Statement December 31, 2010For the Year Ended December 31, 2010 EquipmentSalaries expenseAccounts receivableS. Woods, Capital, January 1Salaries payableUtilities expenseAccumulated depreciationCashAccounts payableAdditional investment by ownerNet lossDrawingsS. Woods, Capital, December 31Service revenueRepair expenseInsurance expenseDepreciation expensePrepaid insurance $ Add: Repair expenseCashUtilities expenseAccumulated depreciationEquipmentS. Woods, Capital, January 1Accounts payableDepreciation expenseInsurance expenseAccounts receivableS. Woods, Capital, December 31Net lossSalaries payableAdditional investment by ownerDrawingsPrepaid insuranceSalaries expenseService revenue Less: Service revenueAccounts receivableS. Woods, Capital, January 1Repair expenseUtilities expenseCashDepreciation expenseInsurance expensePrepaid insuranceEquipmentAccumulated depreciationAccounts payableDrawingsSalaries payableNet lossAdditional investment by ownerS. Woods, Capital, December 31Salaries expense S. Woods, Capital, December 31Utilities expenseAccounts payableAccumulated depreciationDepreciation expenseSalaries payableInsurance expenseDrawingsSalaries expenseRepair expenseNet lossCashEquipmentService revenueAccounts receivableS. Woods, Capital, January 1Prepaid insuranceAdditional investment by owner Additional investment by ownerNet lossEquipmentS. Woods, Capital, January 1Prepaid insuranceAccounts receivableSalaries expenseAccumulated depreciationDepreciation expenseAccounts payableInsurance expenseRepair expenseService revenueUtilities expenseDrawingsCashSalaries payableS. Woods, Capital, December 31 $ WOODS COMPANY Balance Sheet For the Year Ended December 31, 2010December 31, 2010 Assets Current Assets Accounts receivableInsurance expensePrepaid insuranceNet lossDepreciation expenseUtilities expenseAccumulated depreciationSalaries payableS. Woods, CapitalSalaries expenseService revenueDrawingsRepair expenseInvestment by ownerCashEquipmentAccounts payable $ Accounts receivableNet lossDrawingsRepair expenseInvestment by ownerS. Woods, CapitalPrepaid insuranceEquipmentAccumulated depreciationSalaries expenseCashAccounts payableSalaries payableInsurance expenseService revenueDepreciation expenseUtilities expense Insurance expenseAccumulated depreciationDrawingsInvestment by ownerEquipmentDepreciation expenseUtilities expenseAccounts payableS. Woods, CapitalSalaries payableNet lossRepair expenseSalaries expenseService revenuePrepaid insuranceAccounts receivableCash Total current assets Property, plant and equipment Salaries payableRepair expenseAccounts receivableNet lossS. Woods, CapitalInsurance expenseCashPrepaid insuranceAccumulated depreciationDrawingsInvestment by ownerSalaries expenseAccounts payableService revenueEquipmentDepreciation expenseUtilities expense $ AddLess: S. Woods, CapitalCashSalaries expenseInsurance expenseService revenueNet lossAccounts receivableEquipmentDepreciation expenseAccounts payableDrawingsInvestment by ownerAccumulated depreciationUtilities expenseSalaries payablePrepaid insuranceRepair expense Total assets $ Liabilities and Owner's Equity Current liabilities Accounts payableInvestment by ownerDepreciation expenseEquipmentSalaries expenseService revenueAccumulated depreciationPrepaid insuranceInsurance expenseAccounts receivableRepair expenseCashSalaries payableUtilities expenseS. Woods, CapitalNet lossDrawings $ Repair expenseS. Woods, CapitalSalaries expenseService revenueInvestment by ownerAccounts payableEquipmentDrawingsInsurance expenseAccumulated depreciationPrepaid insuranceSalaries payableAccounts receivableCashNet lossDepreciation expenseUtilities expense Total current liabilities Owner's Equity CashInsurance expenseS. Woods, CapitalDepreciation expenseNet lossDrawingsPrepaid insuranceSalaries payableInvestment by ownerUtilities expenseRepair expenseAccounts payableAccumulated depreciationService revenueSalaries expenseEquipmentAccounts receivable Total liabilities and owner's equity $ Prepare the closing entries. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Date Account/Description Debit Credit Dec. 31 Service revenueAccounts receivableDepreciation expenseNet lossIncome summaryRepair expenseInvestment by ownerS. Woods, CapitalSalaries expenseInsurance expenseUtilities expenseS. Woods, DrawingSalaries payableCashPrepaid insuranceAccounts payableEquipmentAccumulated depreciation Service revenuePrepaid insuranceDepreciation expenseUtilities expenseNet lossSalaries expenseS. Woods, CapitalAccounts receivableS. Woods, DrawingAccumulated depreciationInvestment by ownerEquipmentAccounts payableSalaries payableCashInsurance expenseIncome summaryRepair expense (To close revenue account.) Dec. 31 Accumulated depreciationIncome summaryS. Woods, CapitalRepair expenseNet lossInvestment by ownerAccounts payableCashDepreciation expenseInsurance expensePrepaid insuranceUtilities expenseSalaries expenseS. Woods, DrawingSalaries payableService revenueAccounts receivableEquipment S. Woods, CapitalService revenueInvestment by ownerAccounts receivableSalaries expenseSalaries payableUtilities expenseDepreciation expenseAccounts payableRepair expenseNet lossInsurance expenseIncome summaryS. Woods, DrawingCashPrepaid insuranceEquipmentAccumulated depreciation Salaries payableService revenuePrepaid insuranceS. Woods, CapitalSalaries expenseNet lossIncome summaryDepreciation expenseEquipmentAccumulated depreciationInsurance expenseAccounts receivableAccounts payableCashInvestment by ownerRepair expenseUtilities expenseS. Woods, Drawing EquipmentIncome summaryInsurance expenseSalaries payableAccumulated depreciationUtilities expenseAccounts payableNet lossInvestment by ownerSalaries expenseS. Woods, DrawingDepreciation expenseRepair expenseService revenueAccounts receivableCashPrepaid insuranceS. Woods, Capital Prepaid insuranceEquipmentInsurance expenseS. Woods, CapitalDepreciation expenseS. Woods, DrawingSalaries payableCashAccounts receivableInvestment by ownerUtilities expenseNet lossService revenueRepair expenseAccumulated depreciationSalaries expenseAccounts payableIncome summary Depreciation expenseCashAccounts receivableAccounts payableService revenueRepair expenseNet lossPrepaid insuranceInvestment by ownerS. Woods, DrawingSalaries payableIncome summarySalaries expenseInsurance expenseUtilities expenseS. Woods, CapitalAccumulated depreciationEquipment (To close expense accounts.) Dec. 31 Repair expenseSalaries expenseEquipmentUtilities expenseS. Woods, DrawingPrepaid insuranceDepreciation expenseSalaries payableCashS. Woods, CapitalAccounts receivableService revenueNet lossAccumulated depreciationAccounts payableInvestment by ownerIncome summaryInsurance expense Income summaryDepreciation expensePrepaid insuranceRepair expenseInsurance expenseSalaries expenseCashUtilities expenseEquipmentService revenueAccumulated depreciationS. Woods, CapitalS. Woods, DrawingAccounts receivableAccounts payableSalaries payableNet lossInvestment by owner (To close net income.) Dec. 31 Service revenueRepair expenseCashUtilities expenseS. Woods, DrawingDepreciation expenseInsurance expenseS. Woods, CapitalEquipmentAccumulated depreciationAccounts receivableSalaries expensePrepaid insuranceAccounts payableSalaries payableNet lossInvestment by ownerIncome summary Net lossPrepaid insuranceIncome summaryAccounts payableS. Woods, DrawingInvestment by ownerEquipmentCashInsurance expenseSalaries payableAccumulated depreciationService revenueRepair expenseDepreciation expenseSalaries expenseUtilities expenseS. Woods, CapitalAccounts receivable (To close drawings.) Post the closing entries and rule and balance the accounts. Use T accounts. Income Summary is account No. 350. (If an amount should be blank, enter a zero. All boxes must be filled to be correct.) S. Woods, Capital Repair Expense 12/31 12/31 12/31 12/31 12/31 12/31 12/31 12/31 Depreciation Expense 12/31 12/31 S. Woods, Drawing 12/31 12/31 Insurance Expense 12/31 12/31 Income Summary 12/31 12/31 Salaries Expense 12/31 12/31 12/31 12/31 Utilities Expense Service Revenue 12/31 12/31 12/31 12/31 Complete the post-closing trial balance. (If answer is zero, please enter 0. Do not leave any fields blank.) WOODS COMPANY Post-Closing Trial Balance December 31, 2010 Trial Balance Account Titles Dr. Cr. Cash $ $ Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Salaries Payable S. Woods, Capital S. Woods, Drawing Service Revenue Repair Expense Depreciation Expense Insurance Expense Salaries Expense Utilities Expense $ $