QUESTION 1 The following is the Bravo Unlimited unadjusted Trial Balance. Bravo Unlimited Unadjusted Trial Balance December 31, 2016 Account Title

DEBIT Cash $88,450 Accounts Receivable 231,860 Supplies 6,255 Prepaid Rent 11,000 Equipment 395,285

CREDIT Accumulated Depreciation $224,260 Accounts Payable 72,555 Wages Payable 0 Capital Stock 220,000 Retained Earnings 111,145 Service Revenue 893,105 Interest Income 1,500

DEBIT Rent Expense 60,500 Wages Expense 527,260 Supplies Expense 42,520 Utilities Expense 8,595 Depreciation Expense 144,000 Interest Expense 6,840 ________ Totals DEBIT $1,522,565

CREDIT $1,522,565

Adjusting Items: 1. A physical inventory shows supplies on hand of $2,000 at year end. 2. The prepaid rent covers 2 months (December 2016 & January 2017 rents). Record December's rent. 3. December depreciation on equipment is $12,000 per month. 4. At year end Wages of $10,300 were earned but unpaid. Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment. If no entry is required then write "No Entry Required."

Question 2 (25 points) The following is the Bravo Unlimited adjusted Trial Balance. Bravo Unlimited Adjusted Trial Balance December 31, 2016 Account Title

DEBIT Cash $88,450 Accounts Receivable 231,860 Supplies 17,255 Equipment 395,285 CREDIT Accumulated Depreciation $224,260 Accounts Payable 72,555 Capital Stock 120,000 Retained Earnings 214,145 Service Revenue 892,105

Interest Income 2,500

DEBIT Dividends 5,000 Rent Expense 58,700 Wages Expense 527,000 Supplies Expense 42,600 Utilities Expense 8,600 Depreciation Expense 150,815 ________ Totals

DEBIT $1,525,565

CREDIT $1,525,565 Use this information to prepare the Income Statement for the fiscal year.