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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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