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The year-end financial statements of Rattlers Tax Services are provided below. RATTLERS TAX SERVICES Income Statement Service revenue $ 77,500 Expenses: Salaries $ 46,000 Utilities
The year-end financial statements of Rattlers Tax Services are provided below. |
RATTLERS TAX SERVICES | ||||||
Income Statement | ||||||
Service revenue | $ | 77,500 | ||||
Expenses: | ||||||
Salaries | $ | 46,000 | ||||
Utilities | 8,200 | |||||
Insurance | 5,800 | |||||
Supplies | 2,100 | 62,100 | ||||
Net income | $ | 15,400 | ||||
RATTLERS TAX SERVICES | |||||||||
Statement of Stockholders' Equity | |||||||||
Common Stock | Retained Earnings | Total Stockholders' Equity | |||||||
Beginning balance, Jan. 1 | $ | 60,000 | $ | 24,500 | $ | 84,500 | |||
Issue stock | 30,000 | 30,000 | |||||||
Net income | 15,400 | 15,400 | |||||||
Dividends | (6,000 | ) | (6,000 | ) | |||||
Ending balance, Dec. 31 | $ | 90,000 | $ | 33,900 | $ | 123,900 | |||
RATTLERS TAX SERVICES | ||||||||||
Balance Sheet | ||||||||||
Assets | Liabilities | |||||||||
Cash | $ | 4,700 | Accounts payable | $ | 3,000 | |||||
Accounts receivable | 7,200 | Stockholders' Equity: | ||||||||
Land | 115,000 | Common stock | $ | 90,000 | ||||||
Retained earnings | 33,900 | 123,900 | ||||||||
Total assets | $ | 126,900 | Total liabilities and equities | $ | 126,900 | |||||
4.
value: 0.83 points
Required information
Required: |
1. | Record year-end closing entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) |
2. | Prepare a post-closing trial balance. (Hint: The balance of Retained Earnings will be the amount shown in the balance sheet.)
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