Prepare Financial Statements:

1. Income Statement (Single-step)
2. Statement of Retained Earnings
3. Balance Sheet

Prepare Closing Journal Entries

4. Record all temporary accounts in Closing Journal Entries
5. $800 dividend was declared and paid at the end of the year 12/31/19.

General Journal Account Titles and Explanation Date Ref. Debit Credit 1 148,000 1/1/19 Cash Additional Paid in Capital - Common Stock Common Stock 134,000 14,000 17,000 3/1/19 Equipment - Boat Cash Notes Payable - First Hawaiian Bank 2,000 15,000 300 9/1/19 Interest Expense Cash 300 9,000 3/1/19 Office Supplies/Lures Accounts Payable 9,000 4/10/19 Cash Service Revenue Page 32,000 32,000 2,900 5/1/19 Prepaid Insurance Cash 5 5 2,900 4,500 8/1/19 Accounts Payable Cash 4,500 7 21,000 9/1/19 Cash Unearned Service Revenue 21,000 900 11/2/19 Cash Gain on Sale of Supplies/Lures Office Supplies/Lures 400 500 9 12/31/19 Salaries Expense Utilities Expense Boat Gas Expense Cash 11,000 3,000 13,000 27,000 NAME Adjusting Entries 12/31/19 Interest Expense Interest Payable 200 200 1,574 12/31/19 Depreciation Expense Accumulated Depreciation 1,574 8,500 12/31/19 Office Supplies/Lures Expense Office Supplies/Lures 8,500 1,933 12/31/19 Insurance Expense Prepaid Insurance 1,933 10,500 12/31/19 Unearned Service Revenue Service Revenue 10,500 Closing Entries Page 2 KEY Shark Bait Worksheet December 31, 2019 Adjustments Debit Key Adjusted Trial Balance Debit Credit Income Statement Debit Credit Balance Sheet Debit Credit Key Credit Accounts Cash Office Supplies/Lures Prepaid Insurance Equipment - Boat Accumulated Depre - Equipment Unadjusted Trial Balance Debit Credit 165,200 8,500 2,900 17,000 4,500 Accounts Payable Interest Payable Unearned Service Revenue Notes Payable 21,000 15,000 Common Stock Additional Paid in Capital in excess of par Retained Earnings, 1/1/19 14,000 134,000 =Page 1 32,000 Service Revenue Interest Expense Salaries Expense Utilities Expense Boat Gas Expense Gain on sale of supplies/lures Depreciation Expense Office Supplies Expense Insurance Expense 300 11,000 3,000 13,000 400 Totals 220,900 220,900 Net Income (before-tax) Total Income Statement Statement of Shareholder's Equity Balance Sheet