Step 7 - Prepare an adjusted trial balance. This is an extra step if you have done the optional worksheet. Diamond Consulting Adjusted Trial Balance 31-Jul-18 Account Title Acct. No Debit Credit Cash 11 32,450 Account Receivable 12 16,450 Supplies 14 1,525 Prepaid Rent 15 2,400 Prepaid Insurance 16 4,125 Office Equipment 18 14,000 Accum. Depreciation 19 750 Accounts Payable 21 1,300 Salaries Payable 22 175 Unearned Fees 23 Common Stock 31 45,000 Retained Earnings 32 Dividends 33 12.500 Fees Earned 41 44,350 Salaries Expense 51 3,675 Rent Expense 52 2.400 Supplies Expense 53 2,275 Depreciation Expense 54 750 Insurance Expense 55 375 Miscellaneous Expense 59 1.400 Totals $ 94,325 $ 94,325 2,750 Objective 2 - Prepare financial statements from adjusted account balances. Step 8 & 11 are to be prepared. The previous steps are for illustration. Step 8 - Prepare an income statement, retained earnings statement, and balance sheet. $ 44,350 Diamond Consulting Income Statement For the Month Ended July 31, 2018 Fees earned Expenses: Salary expense Rent expense Supplies expense Depreciation expense Insurance expense Miscellaneous expense Total expenses Net income $ Diamond Consulting Statement of Stockholders' Equity For the Month Ended July 31, 2018 Common Retained Stock Earnings Total Balance at July 1, 2018 $ $ $ Common stock issued 45.000 45,000 Net income 33,475 33,475 Less: Dividends (Show as negative.) (12,500) (12,500) Balance at July 31, 2018 $ 45,000 $ 20,975 65,975 Diamond Consulting Balance Sheet As of July 31, 2018 Assets Current assets: Cash Accounts receivable Supplies Prepaid rent Prepaid insurance Total current assets Property, plant, and equipment Office equipment $ Accumulated depreciation - office equipment Total property, plant, and equipment - net Total assets Liabilities Current liabilities Accounts payable Salaries payable Unearned fees Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Objective 3 - Prepare closing entries. Step 9 - Journalize closing entries for the intitial month of July 31, 2018. Closing Journal Entries Page 4 2018 Post. Date Ref. Debit Credit July 31 Fees Earned 41 44,350 Retained Earnings 32 33,475 Salary Expense 51 3,675 Rent Expense 52 2,400 Supplies Expense 53 2,275 Depreciation Expense 54 750 Insurance Expense 55 375 Miscellaneous Expense 59 1,400 To close revenue and expense accounts to retained earnings. 31 Retained Earnings 32 12,500 Dividends 33 12,500 To close dividends to retained earnings. Total closing entries. 56,850 56,850 Step 11 - Prepare a post-closing trial balance REQUIRED TO BE FILLED-IN. Diamond Consulting Post-Closing Trial Balance 31-Jul-18 Account Title Acct. No. Debit Credit Cash 11 32,450 Account Receivable 12 Supplies 14 Prepaid Rent 15 Prepaid Insurance 16 Office Equipment 18 Accum. Depreciation 19 Accounts Payable 21 Salaries Payable 22 Unearned Fees 23 Common Stock 31 Retained Earnings 32 Dividends 33 Fees Earned 41 Salaries Expense 51 Rent Expense 52 Supplies Expense 53 Depreciation Expense 54 Insurance Exper 55 Miscellaneous Expense 59 Totals 32,450 End of the accounting cycle for PR4-5A July 31, 2018. EX04-06 Income Statement with a Net Loss - Lec+ ONLY The following revenue and expense account balances were taken from the ledger of Acorn Health Services Co. after the accounts had been adjusted on January 31, 2018, the end of the fiscal year. Prepare an income statement. Depreciation Expense Insurance Expense Miscellaneous Expense Rent Expense $ 10,000 9,000 8,150 60,000 Service Revenue Supplies Expense Utilities Expense Wage Expense $ 634,900 4,100 44,700 548,200 Header 1 Here Header 2 Here Header 3 Here I Fees earned Expenses: Wage expense Rent expense Utilities expense Depreciation expense Insurance expense Supplies expense Miscellaneous expense Total expenses Net income (loss) EX04-06 Income Statement with a Net Loss - Lec+ ONLY The following revenue and expense account balances were taken from the ledger of Acorn Health Services Co. after the accounts had been adjusted on January 31, 2018, the end of the fiscal year. Prepare an income statement. Depreciation Expense Insurance Expense Miscellaneous Expense Rent Expense $ 10,000 9,000 8,150 60,000 Service Revenue Supplies Expense Utilities Expense Wage Expense $ 634,900 4,100 44,700 548,200 Header 1 Here Header 2 Here Header 3 Here Fees earned Expenses: Wage expense Rent expense Utilities expense Depreciation expense Insurance expense Supplies expense Miscellaneous expense Total expenses Net income (loss) MAD04-01 14e Working Capital and Current Ratio: Amazon and Best Buy in millions Lect only Amazon $ 31,327 28,089 Best Buy $ 10,485 7,436 Current assets Current liabilities Working capital = current assets - current liabilities Current ratio = current assets / current liabilities End Lecture Plus