P4-3B The completed nancial statement columns of the worksheet for Niho Company are shown below. NIHO COMPANY Worksheet For the Year Ended December 31, 2015 Account Income Statement Balance Sheet No. Account Titles Dr. Cr. Dr. Cr. 101 Cash 5,200 112 Accounts Receivable 7,500 130 Prepaid Insurance 1,800 157 Equipment 33,000 158 Accumulated DepreciationEquip. 8,600 201 Accounts Payable 11,700 212 Salaries and Wages Payable 3,000 311 Common Stock 20,000 320 Retained Earnings 14,000 332 Dividends 7,200 400 Service Revenue 45,000 622 Maintenance and Repairs Expense 4,400 711 Depreciation Expense 2,800 722 Insurance Expense 1,200 726 Salaries and Wages Expense 35,200 732 Utilities Expense 4,000 Totals 47,600 45,000 54,700 57,300 Net Loss 2,600 2,600 47,600 47,600 57,300 57,300 Instructions (a) Prepare an income statement, a retained earnings statement, and a classi ed balance sheet. (b) Prepare the closing entries. (c) Post the closing entries and underline and balance the accounts. (Use T-accounts.) Income Summary is account No. 350. (d) Prepare a post-closing trial balance.

P5-2A Latona Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Latona showed Cash of $5,000 and Common Stock of $5,000.

May 1 Purchased merchandise on account from Grays Wholesale Supply $4,200, terms 2/10, n/30. 2 Sold merchandise on account $2,100, terms 1/10, n/30. The cost of the merchandise sold was $1,300. 5 Received credit from Grays Wholesale Supply for merchandise returned $300. 9 Received collections in full, less discounts, from customers billed on sales of $2,100 on May 2. 10 Paid Grays Wholesale Supply in full, less discount. 11 Purchased supplies for cash $400. 12 Purchased merchandise for cash $1,400. 15 Received refund for poor quality merchandise from supplier on cash purchase $150. 17 Purchased merchandise from Amland Distributors $1,300, FOB shipping point, terms 2/10, n/30. 19 Paid freight on May 17 purchase $130. 24 Sold merchandise for cash $3,200. The merchandise sold had a cost of $2,000. 25 Purchased merchandise from Horvath, Inc. $620, FOB destination, terms 2/10, n/30. 27 Paid Amland Distributors in full, less discount. 29 Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30. 31 Sold merchandise on account $1,000 terms n/30. The cost of the merchandise sold was $560.