Question
Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted
Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Account Titles Debit / Credit
{Debit[Cash $ 47,200 Accounts receivable 11,300 Supplies 580 Prepaid insurance 790 Service trucks 16,300]Debit} {Credit[Accumulated depreciation$ 7,900} {Debit[Other assets 9,260}\]} (Accounts payable 2,320)]credit[ Wages payable Income taxes payable {Credit[Note payable (3 years; 10% interest due each December 31) 15,000 Common stock (4,200 shares outstanding) 1,916 Additional paid-in capital 17,244 Retained earnings 5,600 Service revenue 68,740]Credit} Remaining expenses (not detailed; excludes income tax) 33,290(debit) Income tax expense
totals $ 118,720(Debit) $ 118,72(credit)
Data not yet recorded at December 31 included: The supplies count on December 31 reflected $160 in remaining supplies on hand to be used in the next year. Insurance expired during the current year, $790. Depreciation expense for the current year, $4,100. Wages earned by employees not yet paid on December 3, $690. Income tax expense, $5,480. 2-a. Prepare an income statement that include the effects of the preceding five transactions. Record the closing entry. 2-b. Prepare a classified balance sheet that include the effects of the preceding five transactions
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