So here is a question that i have, could somes one please answer it. I work full time and go to school full time, and accounting online is almost impossible. Could someone please help!
Problem 5.3A Preparing Financial Statements and Closing Entries of an Unprotable Company (LO 5-1. LO 5-2. L0 5-3, L0 5-4, LO 5-6) Mystic Masters. inc., provides fortune-telling services over the Internet. In recent years the company has experienced severe nancial difcuity. Its accountant prepares adjusting entries on a monthly basis, and closing entries on an some! basis. at December 31. An activated trial balance dated December 31. 2015, follows. MYSHC MASTERS, INC. Adjusted Trial Balance December 31, 2015 Debils Creds Casi-I $ 960 Accounts receivable 300 Unexpired insurance 2,000 Prepaid rent 1,500 Supplies 200 Furniture and xtures 8,400 Accumulated depreciation: furniture and xtures $ 5,200 Accounts payable 6,540 Notes payable 24,000 Salaries payable 1,700 interest payable 360 Uneamed client revenue 200 Capital stock 4,000 Retained earnings 2,600 Client revenue earned 52,000 insurance expense 6,000 Ofce rent expense 9,000 Supplies expense 440 Salary expense 48,000 De preciaticn expense: tumiture and xtures 1,400 Ofce and telephone expense 3,000 Internet service expense 4,900 Legal expense 1 .500 Interest expense 4,000 Miscellaneous expense 5,000 $ 96,600 S 96,600 (Hint: The company incumed no income taxes expense in 2015.) 31-1. Prepare an income statement for the year ended December 31. 2015. Revenues: Client revenue earned Expenses: II'ISUTEI'IOE EXpEI'ISE Ofce rent expense Su ppliee expe nae Salary expense Depreciation expense: lun'iiture and xtures Ofce and telephone expense lntemet service expense Legal expense Interest expense Miscellaneous expense 33,240 $ (33.240) \fs3. Prepare the company's balance sheet dated December 31. 2015. (Amounts to be deducted should be Indicated with a minus sign] Assets: Furniture 81 xtures Total assets Ltablllties: Total liabilities $ 0 Stockholders' equity: Total stockholders' equity 0 Total liabilities and studthelders' equity $ 0 b. Prepare the necessary year-end closing entries. [If no entry ls required for a transsetlonlevenl, select \"No Journal entry requlred" in the rst account 'l'leld.} view hanlacen llet view genereljeurnel Journal Entry Worksheet Q II E] E] Record the entry to close client revenue earned to income summary. 1 D Dec. 31 *Enter debiB before credits E E b. Prepare the necessary year-end closing entries. [If no entry ls required for a transactlonl'event, select "No journal entry requlred" in the rst account fleld.} | utewtranlactlerllllt H Hewgenerallcurnal qurnal Entry Worksheet E [E Dec. 31 Record the entry to close all expense aeccunts to income summary. [I] c. Prepare an alter-closing trial balance. *Enter debits before credits rm; b. Prepare the necessary yeerend closing entries. [If no entry ls required for a transeetlom'evenl, select "No Journal entry requlred" in the flrel account fleld.} [ \"WWII-t H Moonwallnll'nal J Journal Entry Worksheet Q B E] E Record the entry tn transfer a net loss in 2015 to the retained earnings ' account. ' Dec. 31 *Enber debits before credits E E \fd. Using the nancial statements prepared in part a. briey evaluate the company's performance. (Enter your answers as a percentage rounded to the nearest whole number.) e. Identify infon'nation that the company is apt to disclose in the notes that accompany the nancial statements prepared in part a
