Question
Requirement 1. Prepare a worksheet for FuzzyFuzzy Investment Advisers at DecemberDecember 3131, 20182018. The unadjusted balances have been entered for you in the trial balance
Requirement 1. Prepare a worksheet for
FuzzyFuzzy
Investment Advisers at
DecemberDecember
3131,
20182018.
The unadjusted balances have been entered for you in the trial balance columns of the worksheet. Complete the worksheet one section at a time beginning with the Adjustments section. Enter the adjustments along with the adjustment letter
referenceslong dash(a),
(b), (c),
etc.long dashinto
the columns as appropriate. In the following step, complete the Adjusted Trial Balance. Lastly, complete the worksheet by preparing the Income Statement and Balance Sheet columns. Be sure to calculate the total debits and credits in each step.
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(Click the icon to view the abbreviations used.)
Fuzzy Investment Advisers |
Worksheet |
December 31, 2018 |
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| Trial Balance | Adjustments | ||||
Acct. Title | Debit | Credit |
| Debit | Credit | |
Cash | 33,000 |
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A/R | 44,000 |
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Office Supp. | 5,000 |
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Equipment | 25,000 |
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A/D-Equip. |
| 18,000 |
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A/P |
| 17,000 |
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Salaries Pay. |
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Unearn. Rev. |
| 3,000 |
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N/P (l/t) |
| 18,000 |
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Fuzzy, Cap. |
| 41,000 |
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Fuzzy, W/D | 34,000 |
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Service Rev. |
| 96,000 |
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Ins. Exp. | 2,000 |
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Salaries Exp. | 36,000 |
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Supplies Exp. |
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Interest Exp. | 7,000 |
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Rent Exp. | 7,000 |
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Depr. Exp. |
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Total | 193,000 | 193,000 |
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Net income or loss |
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Adjusted | |
Trial Balance | |
Debit | Credit |
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Income | Balance | ||
Statement | Sheet | ||
Debit | Credit | Debit | Credit |
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Requirement 2. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in account format. Assume there were no contributions made by the owner during the year.
Begin by preparing the income statement.
Review the Income Statement columns of the worksheet completed in Requirement 1.
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| Income Statement |
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| Year Ended December 31, 2018 |
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Net Income (Loss) |
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Prepare the statement of owner's equity. Assume that there were no contributions made by the owner during the year. Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. (Exclude any zero-balance events for the period from the statement of owner's equity.)
Review the Balance Sheet columns of the worksheet completed in Requirement 1.
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| Fuzzy Investment Advisers |
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| Statement of Owner's Equity |
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| Year Ended December 31, 2018 |
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Fuzzy, Capital, January 1, 2018 |
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Fuzzy, Capital, December 31, 2018 |
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Prepare the classified balance sheet in account format on
DecemberDecember
3131,
20182018.
(If a box is not used in the balance sheet, leave the box empty; do not select a label or enter a zero. Abbreviations used: Depr.= Depreciation; Equip.=Equipment.)
Review the Balance Sheet columns of the worksheet completed in Requirement 1.
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Review the Statement of Owner's Equity completed above.
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Fuzzy Investment Advisers | |||||||
Balance Sheet | |||||||
December 31, 2018 | |||||||
Assets | Liabilities | ||||||
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Less: |
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Requirement 3. Prepare closing entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Start by closing revenues.
Review the Income Statement columns of the worksheet completed in Requirement 1.
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Date | Accounts and Explanation | Debit | Credit | ||
Dec. 31 |
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Clos. (1) |
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Close expenses for the period.
Review the Income Statement columns of the worksheet completed in Requirement 1.
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Date | Accounts and Explanation | Debit | Credit | ||
Dec. 31 |
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Clos. (2) |
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Close Income Summary.
Review the Income Statement columns of the worksheet completed in Requirement 1.
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Date | Accounts and Explanation | Debit | Credit | ||
Dec. 31 |
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Clos. (3) |
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Close withdrawals.
Review the Balance Sheet columns of the worksheet completed in Requirement 1.
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Date | Accounts and Explanation | Debit | Credit | ||
Dec. 31 |
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Clos. (4) |
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