Question
The balances in the ledger of A Good Company as of January 1, 2017 before adjustments are as follows: Cash $ 4,250 Retained Earnings $13,525
The balances in the ledger of A Good Company as of January 1, 2017 before adjustments are as follows:
Cash | $ 4,250 |
| Retained Earnings | $13,525 |
Supplies | 3,900 |
| Dividends | 3,425 |
Prepaid Insurance | 8,400 |
| Service Revenue | 63,200 |
Equipment | 41,750 |
| Salary Expense | 24,300 |
Accumulated Depreciation | 9,950 |
| Rent Expense | 6,000 |
Capital Stock | 6,850 |
| Miscellaneous Expense | 1,500 |
Adjustment data are as follows: supplies on hand, January 31, 2017 $1,800; insurance expired for January, $1,100; depreciation on equipment for January, $2,500; salaries accrued, January 31, $1,650.
(a) | Prepare a ten-column work sheet for A Good Company for January 31. |
(b) | On the basis of the work sheet in (a), present the following in good order: (1) income statement, (2) retained earnings statement (no additional investments were made during the month), and (3) classified balance sheet. |
(c) | On the basis of the work sheet in (a), journalize the closing entries as of January 31. |
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