Question
Stark Technology adjusted trial balance on December 31, 2020 appears in the worksheet as follows: No. Account Debit Credit 101 Cash $57,850 124 Supplies $2,150
Stark Technology adjusted trial balance on December 31, 2020 appears in the worksheet as follows:
No. | Account | Debit | Credit |
101 | Cash | $57,850 |
|
124 | Supplies | $2,150 |
|
128 | Prepaid insurance | $3,800 |
|
167 | Equipment | $145,000 |
|
168 | Accumulated depreciation, equipment |
| $24,000 |
201 | Accounts payable |
| $16,800 |
210 | Wages payable |
| $6,300 |
301 | Tony Stark, capital |
| $210,000 |
302 | Tony Stark, withdrawals | $75,000 |
|
401 | Revenue |
| $200,000 |
612 | Depreciation expense, equipment | $24,000 |
|
623 | Wages expense | $93,000 |
|
637 | Insurance expense | $1,500 |
|
640 | Rent expense | $41,000 |
|
650 | Office supplies expense | $5,500 |
|
690 | Utilities Expense | $8,300 |
|
| Totals | $457,100 | $457,100 |
Required using the worksheets provided
1. Prepare the closing entries.
2. Prepare the post-closing trial balance at December 31, 2020.
3. Prepare the income statement, statement of changes in equity and a classified balance sheet as at December 31, 2020.
Requirement 1
| General Journal |
| Page 1 |
Date | Account Titles and Explanation | Debit | Credit |
Requirement 2
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Post-closing Trial Balance | |||||
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No. | Account | Debit | Credit | ||
101 | Cash |
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124 | Supplies |
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128 | Prepaid insurance |
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167 | Equipment |
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168 | Accumulated depreciation, equipment |
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201 | Accounts payable |
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210 | Wages payable |
|
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301 | Tony Stark, capital |
|
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302 | Tony Stark, withdrawals |
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401 | Revenue |
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612 | Depreciation expense, equipment |
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623 | Wages expense |
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637 | Insurance expense |
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640 | Rent expense |
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650 | Office supplies expense |
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690 | Utilities Expense |
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| Totals |
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Requirement 3 | |||||
Income Statement | |||||
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Revenues |
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Operating Expenses |
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Total Operating Expenses |
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Profit/Loss |
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