PREPARE:

Record and post closing entries for the temporary accounts

Prepare the post-closing trial balance

Adjusted Trial Balance Credit $ $ $ Debit 4,490 4,290 680 $ 79,000 $ 124,000 Cash Accounts Receivable Supplies Prepaid Rent Building Equipment Accumlated Depreciation Accounts Payable Utilities Payable Salaries and Wages Payable Income Tax Payable Interest Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Rent Expense Supplies Expense Depreciation Expense Interest Expense Income Tax Expense $ 38,270 $ 5,085 S - $ 1,790 $ 6,545 $ 112 $ 33,650 $ 95,000 $ 28,725 S 300 $ 8,290 $ 2,130 $ 850 $ 190 5 770 S 112 $ 655 $ 217,467 $217,467 Cash Flow Statement under Indirect method Cash flows from Operating Activities S Million Net Income $3,283 Add: Depreciation $770 Dividend $300 Operating profit before working Capital changes $4,353 Increase in Accounts receivable ($2,140 Decrease in Supplies $190 Decrease in prepaid rent $850 Decrease in accounts payable ($790)| Decrease in Utilities payable (5710) Increase in Interest payable $112 Decrease in Salaries and wages payable ($445) Increase in income tax payable $655 Net Cash provided by Operating Activities $2,075 Cash flows from Investing Activities Equipment purchased ($2,250) Net Cash provided by Investing Activities ($2,250) Cash flows from Financing Activities Cash Dividend paid ($300) Net Cash provided by Financing Activities ($300) 475 Net Cash inflow/outflow) Opening balance of cash/cash equivalent Closing balance of cash 54.965 $4400 Income Statement $ 8,290 2,130 Revenue: Service Revenue Expenses: Salaries and Wages Expense Rent Expense Supplies Expense Depreciation Expense Interest Expense Income Tax Expense Dividends Total Expenses: 850 190 770 112 655 300 5,007 3,283 Balance Sheet $ Assets Current Assets: Cash Account Receivable Supplies Total current assets 5,085 1,790 6,545 112 33,650 47,182 $ Liabilities and Shareholder's Equity Current Liabilities: 4,490 Accounts Payable 4,290 Salaries and Wages Payable 680 Income Tax Payable 9,460 Interest Payable Notes Payable Total Liabilities 79,000 124,000 Shareholder's Equity (38,270) Common Stock 164,730 Retained Earnings Total Shareholder's Equity 174,190 Total Liabilities & Shareholder's Ec $ Plant, Property, and Equipment: Building Equipment Accumulated Depreciation Property, plant, and Equipment (ni $ $ 95,000 32,008 127,008 174,190 $ $ Total Assets $