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The following are the trial balance and the other information related to Bruce Sheffield, who operates a construction hauling business. SHEFFIELD TRIAL BALANCE DECEMBER 31,

The following are the trial balance and the other information related to Bruce Sheffield, who operates a construction hauling business.

SHEFFIELD TRIAL BALANCE DECEMBER 31, 2020

Debit

Credit

Cash $35,500
Accounts Receivable 50,800
Allowance for Doubtful Accounts $2,650
Supplies 3,080
Prepaid Insurance 1,400
Equipment 34,500
Accumulated DepreciationEquipment 4,500
Notes Payable 8,400
Owners Capital 45,700
Service Revenue 103,610
Rent Expense 6,500
Salaries and Wages Expense 30,900
Utilities Expenses 1,320
Office Expense 860

$164,860

$164,860

1. Fees received in advance from clients $4,400.
2. Services performed for clients that were not recorded by December 31, $4,300.
3. Equipment is being depreciated at 8% per year.
4. Bad debt expense for the year is $1,490.
5. Insurance expired during the year $500.
6. Sheffield gave the bank a 90-day, 5% note for $8,400 on December 1, 2020.
7. Rent of the building is $500 per month. The rent for 2020 has been paid, as has that for January 2021.
8. Office salaries and wages earned but unpaid December 31, 2020, $1,440.

Sheffield withdrew $14,000 cash for personal use during the year.

1-From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2020.

2-Prepare an income statement for 2020.

3-Prepare a statement of owners equity for 2020.

4-Prepare a classified balance sheet for 2020.

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