Problems: Series B PR 4-1B. Financial Statements and Closing Entries OBJ. 1, 2, 3 Last Chance Company offers legal consulting advice to prison inmates. Last Chance Company prepared the end-of-period spreadsheet shown at the top of the following page at June 30, 20Y1, the end of the fiscal year. Instructions 1. Prepare an income statement for the year ended June 30. 2. Prepare a statement of owner's equity for the year ended June 30. No additional investments were made during the year. 3. Prepare a balance sheet as of June 30. Answer 4. On the basis of the end-of-period spreadsheet, journalize the closing entries. 5. Prepare a post-closing trial balance. B 1D E F G 1 Last Chance Company 2 End-of-Period Spreadsheet 3 For the Year Ended June 30, 20Y1 4 Unadjusted Adjusted 5 Trial Balance Adjustments Trial Balance 6 Account Title Dr. Cr. Dr. Cr. Dr. Cr. 7 8 Cash 5, 100 5,100 9 Accounts Receivable 22,750 (a) 3,750 26,500 10 Prepaid Insurance 3,600 (b) 1,300 2,300 11 Supplies 2,025 (c) 1,500 525 12 Land 80,000 80,000 13 Building 340,000 340,000 14 Accum. Depr.--Building 190,000 (d) 3,000 193,000 15 Equipment 140,000 140,000 16 Accum. Depr.-Equipment 54,450 (e) 4,550 59,000 17 Accounts Payable 9,750 9,750 18 Salaries and Wages Payable (1) 1,900 1,900 19 Unearned Rent 4,500 (g) 3,000 1,500 20 Tami Garrigan, Capital 361,300 361,300 21 Tami Garrigan, Drawing 20,000 20,000 22 Fees Earned 280,000 (a) 3,750 283,750 23 Rent Revenue (g) 3,000 3,000 24 Salaries and Wages Expense 145, 100 (f) 1,900 147,000 25 Advertising Expense 86,800 86,800 26 Utilities Expense 30,000 30,000 27 Travel Expense 18,750 18,750 28 Depr. Exp.--Equipment (e) 4,550 4,550 29 Depr. Exp.-Building (d) 3,000 3,000 30 Supplies Expense (C) 1,500 1,500 31 Insurance Expense (b) 1,300 1,300 32 Misc. Expense 5,875 5,875 33 900,000 900,000 19,000 19,000 913,200 913,200 34