Answered step by step
Verified Expert Solution
Question
1 Approved Answer
This is a 4 part question. Randy's Services provides general home repairs to customers. The company's fiscal year-end is December 31. The December 31, 2021,
This is a 4 part question.
Randy's Services provides general home repairs to customers. The company's fiscal year-end is December 31. The December 31, 2021, adjusted trial balance appears below. Adjusted Trial Balance Account Title Debit Credit Cash $18,100 Accounts Receivable 16,200 Supplies 3,000 Prepaid Insurance 3,750 Equipment 95,000 Accumulated Depreciation $40,800 Accounts Payable 10,500 Salaries Payable 4,200 Utilities Payable 1,900 Interest Payable 2,000 Notes Payable 40,000 Common Stock 24,000 Retained Earnings 10,500 Dividends 2,500 Service Revenue 224,900 Salaries Expense 162,700 Depreciation Expense 13,600 Insurance Expense 11,250 Supplies Expense 17,400 Utilities Expense 13,300 Interest Expense 2,000 Total $358,800 $358,800 Complete the following steps: 1. Using the adjusted trial balance, prepare; A. an income statement B. and a statement of shareholders' equity for the year ended December 31, 2021 C. and a classified balance sheet as of December 31, 2021. Assume that no common stock is issued during the year. 2)Complete the following closing entries. Debit Credit (a) (b) (c) (d) December 31, 2021 Service Revenue Retained Earnings (Close revenue accounts) Retained Earnings Salaries expense Depreciation expense Insurance expense Supplies expense Utilities expense Interest expense (Close expense accounts) Retained Earnings Dividends (Close dividends account) (f) (8) (h) (0) an (k) 3. Calculate account balances after closing entries Requirement 3 (closing entries posted in red) Retained Earnings Dividends Service Revenue (a (b) 2,500 224,900 10,500 (c) (e (f) 0 0 Depreciation Expense Insurance Expense Salaries Expense 158,500 4,200 11,250 13,600 (h) Interest Expense Supplies Expense 0 17,400 Utilities Expense 11,400 1,900 2,000 (L) 4. Prepare a post-closing trial balance. Account Title Debit Credit Total
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started