The following is Carla Vista Cycle Repair Shop's trial balance at January 31, 2021, the company's fiscal year end: CARLA VISTA CYCLE REPAIR SHOP Trial Balance January 31, 2021 Debit Credit Cash $3,400 Accounts receivable 6,710 Prepaid insurance 6,420 Supplies 5,240 Land 51,000 Building 190,000 Accumulated depreciation-building $11,000 Equipment 27,000 Accumulated depreciation-equipment 4,500 Accounts payable 7,200 Unearned revenue 22,030 Mortgage payable 182,200 H.Dude, capital 61,000 H. Dude, drawings 100,100 Service revenue 240,550 Salaries expense 120,200 Utilities expense 12,000 Interest expense 6,410 $528,480 $528,480 Additional information: 1. The 12-month insurance policy was purchased on June 1, 2020. 2. A physical count of supplies shows $1,310 on hand on January 31, 2021. 3. The building has an estimated useful life of 50 years. The equipment has an estimated useful life of 9 years. 4. The mortgage payable has a 6% interest rate. Interest is paid on the first day of each month for the previous month's interest. 5. By January 31, 2021, $1,300 of services related to the unearned revenue have been provided. 6. During the next fiscal year, $4,500 of the mortgage payable is to be paid. Prepare the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to 0 decimal places, e.g. 125.) Date Account Titles and Explanation Debit Credit Jan. 31 Insurance Expense Prepaid Insurance (To record insurance expired) Jan. 31 Supplies Expense Supplies (To record supplies used) Jan. 31 Depreciation Expense Accumulated Depreciation - Building Accumulated Depreciation - Equipment (To record depreciation) Jan. 31 Interest Expense Interest Payable (To record accrued interest) Jan. 31 Unearned Revenue Service Revenue (To record revenue for services provided) Prepare an adjusted trial balance. (Round answers to 0 decimal places, e.g. 125.) CARLA VISTA CYCLE REPAIR SHOP Adjusted Trial Balance January 31, 2021 Debit Credit Prepare an income statement. CARLA VISTA CYCLE REPAIR SHOP Income Statement Year Ended January 31, 2021 Revenues Service Revenue $ Expenses Salaries Expense $ Utilities Expense Insurance Expense Supplies Expense Depreciation Expense Interest Expense Total Expenses Profit/(Loss) $ Prepare a statement of owner's equity. The owner, Henry Dude, invested $5,000 cash in the business on November 17, 2020. (The investment has been recorded and it is included in the capital account). (List items that increase owner's equity first. Round answers to o decimal places, e.g. 125.) CARLA VISTA CYCLE REPAIR SHOP Statement of Owner's Equity $ vi $ > V $ Prepare a classified balance sheet. The owner, Henry Dude, invested $5,000 cash in the business on November 17, 2020. (The investment has been recorded and it is included in the capital account). (List Property, Plant and Equipment in order of Land, Buildings and Equipment. Round answers to 0 decimal places, e.g. 125.) CARLA VISTA CYCLE REPAIR SHOP Balance Sheet V Assets Prepare the closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to 0 decimal places, e.g. 125.)
