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[The following information applies to the questions displayed below.) Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted trial balance as of December 31, 2018, appears below. December 31 is the company's fiscal year-end. Accounts Debits Credits Cash $ 8,800 Accounts Receivable 8,000 Supplies 1.250 Prepaid Rent 5.400 Equipment 67,500 Accumulated Depreciation $ 9,000 Accounts Payable 6,200 Salaries Payable 0 Interest Payable 0 Utilities Payable 0 Notes Payable 12,500 Common Stock 30,000 Retained Earnings 13,500 Service Revenue 44,400 Salaries Expense 23,000 Interest Expense 0 Rent Expense 0 Supplies Expense 0 Utilities Expense 1,650 Depreciation Expense 0 Totals $115,600 $115,600 Information necessary to prepare the year-end adjusting entries appears below. a. Depreciation of equipment for the year is $4,500. b. Accrued salaries at year-end should be $1,350. c. Crimson Tide borrows $12,500 on September 1, 2018. The principal is due to be repaid in four years. Interest is payable each August 31 at an annual rate of 9%. d. Unused supplies at year-end total $550. Crimson Tide debits Supplies at the time supplies are purchased. e. Crimson Tide opens a second studio by paying for one year of rent in advance on April 1, 2018, for $5,400 ($450 per month) debiting Prepaid Rent. f. Unpaid utilities for December total $100. Required: 1., 2. & 6. Enter the unadjusted balances from the trial balance and post the adjusting entries to the T-accounts, and post the closing entries to the T-accounts. Cash Accounts Receivable Beg. Bal. 8.800 Beg. Bal. End. Bal. 8,800 End. Bal. 0 Supplies Prepaid Rent Beg. Bal. Beg, Bal End. Bal. End, Bal. 0 Equipment Accumulated Depreciation Beg. Ball Beg. Bal End. Bal End, Bal. Accounts Payable Salaries Payable Beg. Bal Beg. Bal. End. Bal 0 End, Bal 0 Utilities Payable Interest Payable Beg Bal Beg Bal End. Bal. 0 End, Bal Notes Payable Common Stock Beg Bal Beg. Bal. End. Bal. 0 End. Bal. 0 Salaries Expense Interest Expense Beg. Bal Beg. Bal End. Bal. End, Bal Rent Expense Supplies Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Utilities Expense Depreciation Expense Beg Bal Beg. Bal End. Bal. End. Bal CRIMSON TIDE MUSIC ACADEMY Adjusted Trial Balance December 31, 2018 Accounts Debit Credit Cash Accounts receivable Supplies Prepaid rent Equipment Accumulated depreciation Accounts payable Salaries payable Interest payable Utilities payable Notes payable Common stock Retained earnings Service revenue Salaries expense Interest expense Rent expense Supplies expense Utilities expense Depreciation expense Totals $ 0 S 0 4-a. Prepare an income statement for the year ended December 3 CRIMSON TIDE MUSIC ACADEMY Income Statement For the Year Ended December 31, 2018 Expenses: Total Expenses 0 the year. CRIMSON TIDE MUSIC ACADEMY Statement of Stockholders' Equity For the Year Ended December 31, 2018 Retained Common Stock Earnings Total Stockholders' Equity Balance at January 1 Balance at December 31 minus sign.) CRIMSON TIDE MUSIC ACADEMY Balance Sheet December 31, 2018 Assets Liabilities Current assets: Current liabilities: 0 Total current liabilities 0 Total current assets Long-term assets: Long-term liabilities: $ 0 Total liabilities Stockholder's Equity Total stockholders' equity Total Liabilities and Stockholders' Equity Total Assets S S 0 Dalance CRIMSON TIDE MUSIC ACADEMY Post-Closing Trial Balance December 31, 2018 Debit Accounts Credit Totals $ 0 $ 0
