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Required information [The following information applies to the questions displayed below.] Tunstall, Incorporated, a small service company, keeps its records without the help of
Required information [The following information applies to the questions displayed below.] Tunstall, Incorporated, a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Cash Accounts receivable Supplies Prepaid insurance Service trucks Accumulated depreciation Other assets Accounts payable. Wages payable. Income taxes payable Tunstall, Incorporated Unadjusted Trial Balance At December 31, Notes payable (3 years; 10% interest due each September Debit Credit 46,700 11,800. 570 630 17,100 9,100 10,860 2,370 30) Common stock (5,200 shares outstanding) 14,000 2,016 Additional paid-in capital 18,144. Retained earnings 4,900 Service revenue 86,610 Wages expense 16,200 Remaining expenses (not detailed; excludes income tax) 33,280 Income tax expense Totals 137,140 137,140 Data not yet recorded at December 31 included: 137,140 137,140 a. The supplies count on December 31 reflected $140 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $630. c. Depreciation expense for the current year, $4,100. d. Wages earned by employees not yet paid on December 31, $690. e. Three months of interest expense (for the note payable borrowed on October 1 of the current year) was incurred in the current year. f. Income tax expense, $5,780. 2-a. Prepare an income statement (with Operating Income and Other Items sections) that include the effects of the preceding six transactions. 2-b. Prepare a classified balance sheet that include the effects of the preceding five transactions. Other Items: TUNSTALL, INCORPORATED Income Statement Income before taxes Earnings per share Current assets Total current assets TUNSTALL, INCORPORATED Balance Sheet Current liablities Total current liabilities: Total liabilities Stockholders' equity Total assets Total stockholders' equity Total liabilities and stockholders' equity
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