Question 1 (30 marks)

The adjusted trial balance for Pacific Consulting Company, as of December 31, 2019, is shown below.

Pacific Consulting Company Adjusted Trial Balance December 31, 2019

Debit Credit

Cash $ 30,500

Accounts receivable 23,200

Supplies 3,950

Prepaid insurance 2,600

Equipment 48,500

Accumulated depreciation - equipment $ 18,800

Accounts payable 3,500

Unearned service revenue 8,700

Salary payable 1,650

Share capital 24,000

Retained earnings 20,000

Dividends 6,000

Service revenue 70,300

Salary expense 25,850

Insurance expense 2,900

Supplies expense 1,850

Depreciation expense equipment 1,600

________

$146,950 $146,950

Required: (a) Prepare the Income statement of Pacific Consulting Company for the year ended December 31, 2019. (7 marks)

(b) Prepare the Statement of retained earnings of Pacific Consulting Company for the year ended December 31, 2019. (4 marks)

(c) Prepare the Statement of financial position of Pacific Consulting Company as of December 31, 2019. (11 marks)

(d) Prepare the necessary closing journal entries for Pacific Consulting Company on December 31, 2019. (Explanation of Journal Entry is not required) (8 marks)