St. Thomas Yacht Services, Inc. had the following transactions during its first month of operations: Dec 2 Borrowed $50,000 from First Bank after signing a 10 year, 5% promissory note. Payments are due on the last day of the month. Dec 4 Journalized the issuance of $50,000 of $1 par value common stock at par. Dec 7 Signed lease and paid the landlord $1,200 rent for the first month. Dec 8 Purchased $12,000 of office furniture on account. Dec 9 Created marketing materials, including a logo. Dec 12 Purchased a one year insurance policy for $2,100. Dec 15 Purchased $1,400 of cleaning supplies on account. Dec 17 Hired 3 employees, who will be paid $12 per hour. Dec 18 Paid $300 to have marketing materials printed. Dec 22 Three employees were sent to distribute marketing materials along Pier 8. Dec 23 Detailed 8 sailboats competing in the Maxi Yacht Rolex Cup this March. The bookkeeper sent an invoice for $14,000. Dec 25 Received $3,000 in deposits to clean two 63 foot yachts. Dec 26 Sent two employees to clean Serendipity, a 56 foot sloop. They spent 3 hours on the job. Dec 29 Paid $72 to employees who cleaned Serendipity and $108 to employees who distributed marketing materials. (Ignore payroll taxes for this problem). Dec 30 Sent a $2,100 invoice to Serendipity's Captain Samantha, less the $700 deposit. Dec 31 Paid First Bank $530 representing $208 in interest plus $322 toward the principal. On December 31 , the following adjustments must be made: - The furniture, which has no salvage value and a 5 year useful life, needs to be depreciated using straight-line depreciation. - A physical count shows only $1,050 of supplies remains in the storage closet. - One month of the 1-year insurance policy has been used. - The Board of Directors did not declare dividends in January. St. Thomas Yacht Services Adjusted Trial Balance December 31, 2012 St. Thomas Yacht Services Income Statement For the year ended December 31, 2012 Revenue: Service Revenue 16,100 Expenses: Advertising Expense 300 Depreciation Expense - Furniture 2,400 Insurance Expense 175 Interest Expense 208 Rent Expense 1,200 Supplies Expense 350 Wages Expense Total Expenses Net Income St. Thomas Yacht Services Balance Sheet December 31, 2012 Assets Current Assets: Cash Accounts Recelvable Supplies Prepaid Insurance 98,690 15,400 1,050 1,925 Property, Plant, \& Equipment: Liabilities Current Liabilities: Accounts Payable Unearned Revenue 13,4002,300 Long Term Liabilities: Notes Payable Total Liabilities 65,37849,678 Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities + Stockholder's Equity 126,665 Complete Step 9 of the Accounting Cycle: Prepare closing entries. Complete Step 11 of the Accounting Cycle: Prepare a Post-closing Trial Balance. St. Thomas Yacht Services Post-closing Trial Balance December 31,2012 Accounts Debits Credits
