The adjusted trial balance columns of the worksheet for Porter Company are as follows. PORTER COMPANY Worksheet For the Year Ended December 31, 2008 Adjusted Trial Balance Acc. No. Account Titles Dr. Cr. 101 Cash 18,800 112 Accounts Receivable 16,200 126 Supplies 2,300 130 Prepaid Insurance 4,400 151 Office Equipment 44,000 152 Acc. Dep. - Off. Equipment 20,000 200 Notes Payable 20,000 201 Accounts Payable 8,000 212 Salaries Payable 2,600 230 Interest Payable 1,000 311 Common Stock 30,000 320 Retained Earnings 6,000 332 Dividends 12,000 400 Service Revenue 77,800 610 Advertising Expense 12,000 631 Supplies Expense 3,700 711 Depreciation Expense 8,000 722 Insurance Expense 4,000 726 Salaries Expense 39,000 905 Interest Expense 1,000 Totals 165,400 165,400 Complete the worksheet by extending the balances to the financial statement columns. (If answer is zero, please enter 0. Do not leave any fields blank.) PORTER COMPANY Worksheet (Partial) For the Month Ended December 31, 2008 Adjusted Trial Balance Income Statement Balance Sheet Acc. No. Account Titles Dr. Cr. Dr. Cr. Dr. Cr. 101 Cash 18,800 112 Accounts Receivable 16,200 126 Supplies 2,300 130 Prepaid Insurance 4,400 151 Office Equipment 44,000 152 Acc. Dep. - Off. Equipment 20,000 200 Notes Payable 20,000 201 Accounts Payable 8,000 212 Salaries Payable 2,600 230 Interest Payable 1,000 311 Common Stock 30,000 320 Retained Earnings 6,000 332 Dividends 12,000 400 Service Revenue 77,800 610 Advertising Expense 12,000 631 Supplies Expense 3,700 711 Depreciation Expense 8,000 722 Insurance Expense 4,000 726 Salaries Expense 39,000 905 Interest Expense 1,000 Totals 165,400 165,400 Net Income Totals Prepare an income statement, a retained earings statement, and a classified balance sheet. $10,000 of the notes payable become due in 2009. B. Porter did not make any additional investments in the business during 2008. (List amounts from largest to smallest eg 10, 5, 3, 2. List assets in order of liquidity and liabilities from largest to smallest eg 10, 5, 3, 2. Enter all amounts as positive amounts and subtract where necessary.) PORTER COMPANY Income Statement For the Year Ended December 31, 2008 Revenues Service revenueSupplies expenseInsurance expenseInterest expenseAdvertising expenseSalaries expenseDepreciation expense $ Expenses Salaries expenseInsurance expenseSupplies expenseInterest expenseService revenueDepreciation expenseAdvertising expense $ Depreciation expenseService revenueInsurance expenseSupplies expenseAdvertising expenseSalaries expenseInterest expense Supplies expenseSalaries expenseAdvertising expenseDepreciation expenseInsurance expenseInterest expenseService revenue Advertising expenseInterest expenseInsurance expenseDepreciation expenseSalaries expenseSupplies expenseService revenue Service revenueSupplies expenseSalaries expenseInterest expenseAdvertising expenseInsurance expenseDepreciation expense Depreciation expenseSupplies expenseInsurance expenseAdvertising expenseInterest expenseService revenueSalaries expense Total expenses Net income $ PORTER COMPANY Retained Earnings Statement For the Year Ended December 31, 2008 Investment by ownerNet incomeRetained earnings, December 31Retained earnings, January 1Dividends $ Add: Retained earnings, January 1Retained earnings, December 31DividendsInvestment by ownerNet income Less: DividendsRetained earnings, January 1Investment by ownerNet incomeRetained earnings, December 31 DividendsInvestment by ownerRetained earnings, December 31Net incomeRetained earnings, January 1 $ PORTER COMPANY Balance Sheet December 31, 2008 Assets Current Assets Accounts receivableSuppliesInterest payableCommon stockOffice equipmentPrepaid insuranceNotes payableAccumulated depreciationRetained earningsAccounts payableSalaries payableCash $ Retained earningsPrepaid insuranceSuppliesNotes payableAccounts receivableCashOffice equipmentAccumulated depreciationAccounts payableSalaries payableInterest payableCommon stock Office equipmentAccounts receivableAccumulated depreciationNotes payableInterest payableAccounts payableSalaries payablePrepaid insuranceCommon stockRetained earningsSuppliesCash Common stockAccounts receivableAccumulated depreciationCashRetained earningsInterest payableAccounts payableNotes payableOffice equipmentSalaries payablePrepaid insuranceSupplies Total current assets Property, plant and equipment Notes payableInterest payablePrepaid insuranceAccumulated depreciationCommon stockAccounts payableCashSalaries payableSuppliesRetained earningsOffice equipmentAccounts receivable $ Less: Accounts receivableSalaries payableInterest payableOffice equipmentRetained earningsNotes payableSuppliesPrepaid insuranceCommon stockAccounts payableAccumulated depreciationCash Total assets $ Liabilities and Stockholders' Equity Current liabilities Interest payableCashAccounts payableAccumulated depreciationRetained earningsAccounts receivableSalaries payableSuppliesPrepaid insuranceNotes payableOffice equipmentCommon stock $ Office equipmentCashCommon stockAccounts receivableSuppliesAccumulated depreciationRetained earningsNotes payableAccounts payablePrepaid insuranceSalaries payableInterest payable SuppliesCommon stockPrepaid insuranceSalaries payableAccounts receivableOffice equipmentCashInterest payableAccounts payableRetained earningsAccumulated depreciationNotes payable SuppliesRetained earningsPrepaid insuranceInterest payableOffice equipmentCashCommon stockSalaries payableAccumulated depreciationNotes payableAccounts payableAccounts receivable Total current liabilities Long-term liabilities Accounts receivableInterest payableSalaries payableCommon stockSuppliesRetained earningsAccounts payablePrepaid insuranceOffice equipmentNotes payableAccumulated depreciationCash Total liabilities Stockholders' Equity Accounts payableNotes payableSalaries payableInterest payablePrepaid insuranceRetained earningsAccounts receivableCommon stockOffice equipmentCashSuppliesAccumulated depreciation $ Notes payableOffice equipmentSalaries payableAccounts payableAccounts receivableRetained earningsInterest payableSuppliesCashPrepaid insuranceAccumulated depreciation Total stockholders' equity Total liabilities and stockholders' equity $ Prepare the closing entries. Use J14 for the journal page. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Date Description/Account Debit Credit Dec. 31 DividendsInterest expenseInsurance expenseIncome summaryRetained earningsAdvertising expenseSalaries expenseService revenueSupplies expenseDepreciation expense Retained earningsDividendsService revenueIncome summarySalaries expenseDepreciation expenseInsurance expenseInterest expenseAdvertising expenseSupplies expense (To close revenue account.) Dec. 31 Insurance expenseSalaries expenseSupplies expenseDepreciation expenseInterest expenseRetained earningsDividendsService revenueIncome summaryAdvertising expense Salaries expenseIncome summaryService revenueDepreciation expenseRetained earningsAdvertising expenseDividendsInsurance expenseSupplies expenseInterest expense Service revenueCommon stockDividendsAdvertising expenseIncome summaryDepreciation expenseSupplies expenseInsurance expenseSalaries expenseInterest expense Depreciation expenseService revenueInsurance expenseSalaries expenseIncome summaryAdvertising expenseSupplies expenseRetained earningsInterest expenseDividends Income summarySupplies expenseDepreciation expenseSalaries expenseAdvertising expenseInterest expenseRetained earningsDividendsInsurance expenseService revenue Interest expenseIncome summaryAdvertising expenseDepreciation expenseRetained earningsInsurance expenseSalaries expenseDividendsSupplies expenseService revenue Insurance expenseIncome summaryDividendsSalaries expenseAdvertising expenseService revenueSupplies expenseRetained earningsDepreciation expenseInterest expense (To close expense accounts.) Dec. 31 Insurance expenseRetained earningsSupplies expenseIncome summarySalaries expenseDepreciation expenseService revenueDividendsInterest expenseAdvertising expense Depreciation expenseInsurance expenseAdvertising expenseRetained earningsSupplies expenseInterest expenseSalaries expenseDividendsService revenueIncome summary (To close net income to retained earnings.) Dec. 31 Supplies expenseInterest expenseDividendsRetained earningsService revenueDepreciation expenseAdvertising expenseIncome summaryInsurance expenseSalaries expense Retained earningsService revenueInterest expenseIncome summaryDividendsAdvertising expenseSupplies expenseDepreciation expenseInsurance expenseSalaries expense (To close dividends to capital.) Post the closing entries. Use the three-column form of account. Income Summary is account No. 350. (If answer is zero, please enter 0. Do not leave any fields blank.) Retained Earnings 320 Date Explanation Ref. Debit Credit Balance Jan. 31 Balance P Dec. 31 Closing entry J14 31 Closing entry J14 Dividends No. 332 Date Explanation Ref. Debit Credit Balance Dec. 31 Balance P 31 Closing entry J14 Income Summary No. 350 Date Explanation Ref. Debit Credit Balance Dec. 31 Closing entry J14 31 Closing entry J14 31 Closing entry J14 Service Revenue No. 400 Date Explanation Ref. Debit Credit Balance Dec. 31 Balance P 31 Closing entry J14 Advertising Expense No. 610 Date Explanation Ref. Debit Credit Balance Dec. 31 Balance P 31 Closing entry J14 Supplies Expense No. 631 Date Explanation Ref. Debit Credit Balance Dec. 31 Balance P 31 Closing entry J14 Depreciation Expense No.711 Date Explanation Ref. Debit Credit Balance Dec. 31 Balance P 31 Closing entry J14 Insurance Expense No. 722 Date Explanation Ref. Debit Credit Balance Dec. 31 Balance P 31 Closing entry J14 Salaries Expense No. 726 Date Explanation Ref. Debit Credit Balance Dec. 31 Balance P 31 Closing entry J14 Interest Expense No. 905 Date Explanation Ref. Debit Credit Balance Dec. 31 Balance P 31 Closing entry J14 Prepare a post-closing trial balance. (If answer is zero, please enter 0. Do not leave any fields blank.) PORTER COMPANY Post-Closing Trial Balance December 31, 2008 Trial Balance Account Titles Dr. Cr. Cash $ $ Accounts Receivable Supplies Prepaid Insurance Office Equipment Accumulated Depreciation-Off. Equipment Notes Payable Accounts Payable Salaries Payable Interest Payable Common Stock Retained Earnings $ $