[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	$	10,300
Accounts Receivable		9,500
Supplies		2,000
Prepaid Rent		7,200
Equipment		90,000
Accumulated Depreciation				$	12,000
Accounts Payable					7,700
Salaries Payable					0
Interest Payable					0
Utilities Payable					0
Notes Payable					20,000
Common Stock					45,000
Retained Earnings					19,000
Service Revenue					42,200
Salaries Expense		24,500
Interest Expense		0
Rent Expense		0
Supplies Expense		0
Utilities Expense		2,400
Depreciation Expense		0
Totals	$	145,900		$	145,900

Information necessary to prepare the year-end adjusting entries appears below.

a. Depreciation of equipment for the year is $6,000.

b. Accrued salaries at year-end should be $2,100.

c. Crimson Tide borrows $20,000 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 12%.

d. Unused supplies at year-end total $700. 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 $7,200 ($600 per month) debiting Prepaid Rent.

f. Unpaid utilities for December total $200.

4.

value: 1.06 points

Required information

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.

References

eBook & Resources

Financial StatementsLearning Objective: 03-04 Post adjusting entries and prepare an adjusted trial balance.Learning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Difficulty: 3 HardLearning Objective: 03-05 Prepare financial statements using the adjusted trial balance.Learning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Check my work

5.

value: 1.06 points

Required information

3. Prepare an adjusted trial balance.

References

eBook & Resources

Financial StatementsLearning Objective: 03-04 Post adjusting entries and prepare an adjusted trial balance.Learning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Difficulty: 3 HardLearning Objective: 03-05 Prepare financial statements using the adjusted trial balance.Learning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Check my work

6.

value: 1.06 points

Required information

4-a. Prepare an income statement for the year ended December 31, 2018.

4-b. Prepare a statement of shareholders' equity for the year ended December 31, 2018. Assume that no common stock is issued during the year.

4-c. Prepare a classified balance sheet for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

References

eBook & Resources

Financial StatementsLearning Objective: 03-04 Post adjusting entries and prepare an adjusted trial balance.Learning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Difficulty: 3 HardLearning Objective: 03-05 Prepare financial statements using the adjusted trial balance.Learning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Check my work

7.

value: 1.06 points

Required information

5. Record closing entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

References

eBook & Resources

General JournalLearning Objective: 03-04 Post adjusting entries and prepare an adjusted trial balance.Learning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Difficulty: 3 HardLearning Objective: 03-05 Prepare financial statements using the adjusted trial balance.Learning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Check my work

8.

value: 1.06 points

Required information

7. Prepare a post-closing trial balance.

References

eBook & Resources

Financial StatementsLearning Objective: 03-04 Post adjusting entries and prepare an adjusted trial balance.Learning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Difficulty: 3 HardLearning Objective: 03-05 Prepare financial statements using the adjusted trial balance.Learning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Check my work