Mei-ling had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Mei-ling prepared the following adjusted trial balance. 51 MATCHA CREATIONS Adjusted Trial Balance December 31, 2021 Account Titles Debit Credit Cash NT$1,016 Accounts Receivable 754 Supplies 304 Prepaid Insurance 1,040 Equipment 1,032 Accumulated Depreciation Equipment NT$38 Accounts Payable Salaries and Wages Payable Unearned Service Revenue 258 Interest Payable Notes Payable 1,720 Share Capital-Ordinary 688 Dividends 430 Service Revenue 3,882 Salaries and Wages Expense 865 Utilities Expense 106 Advertising Expense 144 Supplies Expense 880 Depreciation Expense Insurance Expense Interest Expense NT$6,721 NT$6,721 18 94 Prepare an income statement for the 2 months ended December 31, 2021. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) MATCHA CREATIONS Income Statement For the Two Months Ended December 31, 2021 Revenues NT$ 3882 Service Revenue Expenses Salaries and Wages Expense Utilities Expense NT$ 865 i 106 i Advertising Expense 144 i Supplies Expense Depreciation Expense 880 i 38 i 94 i 18 i Insurance Expense Interest Expense Total Expenses 2145 i Net Income /(Loss) NT$ 1737 Your answer is correct. Prepare an retained earnings statement for the 2 months ended December 31, 2021. (List items that increase retained earnings first.) MATCHA CREATIONS Retained Earnings Statement For the Two Months Ended December 31, 2021 NT$ Retained Earnings, November 1 A Add : Net Income / (Loss) 1737 1737 (Less 4: Dividends 430 i Retained Earnings, December 31 NT$ 1307 MATCHA CREATIONS Statement of Financial Position December 31, 2021 Assets Property, Plant and Equipment A Equipment NT$ 1032 38 i NT$ Less : Accumulated Depreciation-Equipment Current Assets Prepaid Insurance 1040 Supplies 304 Accounts Receivable 754 Cash 1016 Total Current Assets 3114 Total Assets $ 4108 Equity and Liabilities Equity Share Capital-Ordinary NT$ 688 Retained Earnings 1307 Total Equity NT$ 1995 Non-current Liabilities Notes Payable 1720 Interest Payable 18 Total Non-current Liabilities 1738 Current Liabilities Accounts Payable 66 Salaries and Wages Payable 51 Unearned Service Revenue 258 Total Current Liabilities 375 Total Equity and Liabilities NT$ 4108 Mei-ling has decided that her year-end will be December 31, 2021. Prepare closing entries as of December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Dec. 31 (To close revenue account.) Dec. 31 (To close expense accounts.) Dec. 31 (To close net income / (loss).) Dec. 31 (To close dividends.)
