Waldo Anvils Unadjusted Trial Balance December 31, 2018 Balance Account Title Debit Credit Cash $ 18,150 Accounts Receivable 15,500 2,350 1,600 28,000 Prepaid Rent Office Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Unearned Revenue $ 8,000 6,400 0 6,600 Waldo, Capital 29,100 Waldo, Withdrawals 6,000 Service Revenue 23,500 2,000 Salaries Expense Rent Expense Depreciation Expense-Equipment 0 0 0 Supplies Expense $ 73,600 $ 73,600 Total Requirement 1. Prepare the adjusting entries, and post to the accounts. T-accounts have been opened using the balances from the unadjusted trial balance. Begin by preparing the adjusting entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. Unearned Revenue still unearned at December 31, $2,600 Date Debit Credit Dec. 31 Accounts and Explanation Unearned Revenue Service Revenue 2600 Adj. (a) 2600 To adjust revenue earned. b. Prepaid Rent still in force at December 31, $2,200. Date Accounts and Explanation Debit Credit Dec. 31 2200 Rent Expense Prepaid Rent Adj. (b) 2200 To adjust rent expense. 7 Debit Credit c. Office Supplies used, $1,300. Date Accounts and Explanation Dec. 31 Supplies Expense Adj. (c) Office Supplies 1300 1300 To record office supplies used. Debit Credit d. Depreciation, $280. Date Accounts and Explanation Dec. 31 Depreciation Expense-Equipment Adj. (d) Accumulated DepreciationEquipment 280 280 To record depreciation on equipment. e. Accrued Salaries Expense at December 31, $230. Date Accounts and Explanation Debit Credit 230 Dec. 31 Adj. (e) Salaries Expense Salaries Payable 230 To adjust accrued salaries V Post the adjusting entries to the T-accounts. The unadjusted balances of the accounts ("Bal.") have been entered for you. Use the adjustment and corresponding letters as posting references, Cash Service Revenue Accounts Payable 6,400 Bal. Bal. 18,150 23,500 Bal. 2600||Adj. (a) 26100 Bal. Bal. 18150 6400 Bal. Accounts Receivable Salaries Payable 230 0 Bal Salaries Expense 2.000 230||Adj. (e) Bal. 15,500 Adj. (e) Bal Bal. 15500 Bal. 230 Bal 1770 Rent Expense Prepaid Rent 2.350 2200||Adj. (b) Unearned Revenue 2600 6,600 Bal. Bal. Adj. (a) Bal 0 Adj. (b) 2200 Bal. 150 4000 Bal. Bal. 2200 Waldo, Capital Office Supplies 1,600 1300||Adj. (C) Depreciation Expense-Equipment Bal. 0 280||Adj. (d) Bal. 29,100 Bal. Bal. 300 29100 Bal. 280|| Bal. Supplies Expense Equipment 28,000 Waldo, Withdrawals 6,000 Bal. Bal. Bal. 0 1300 Adj. (c) Bal. Bal. 28000 Bal. 6000 1300 Accumulated Depr.-Equip. 8,000 Bal. 8000 Bal Requirement 2. Prepare an adjusted trial balance. Waldo Anvils Adjusted Trial Balance December 31, 2018 Balance Account Title Credit Debit 18150 Cash Accounts Receivable 15500 150 300 28000 8000 6400 230 Prepaid Rent Office Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Unearned Revenue Waldo, Capital Waldo, Withdrawals Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment 4000 29100 6000 26100 1770 2200 280 Office Supplies 1300 67480 Total 67480 Requirement 3. Complete the worksheet for the year ended December 31, 2018. (Abbreviations used: Depr. = Depreciation; Equip. = Equipment.) Waldo Anvils Worksheet (Partial) December 31, 2018 Income Balance Adjusted Trial Balance Statement Sheet Account Title Debit Credit Debit Credit Debit Credit Cash Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depr.-Equip. Accounts Payable Salaries Payable Unearned Revenue Waldo, Capital Waldo, Withdrawals Service Revenue Salaries Expense Rent Expense Depr. Expense-Equip. Supplies Expense Net income or loss Requirement 4. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in report form. Assume that Begin by preparing the income statement. (If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Waldo Anvils Income Statement Year Ended December 31, 2018 Net Income (Loss) Prepare the statement of owner's equity. Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. A Waldo Anvils Statement of Owner's Equity Year Ended December 31, 2018 Waldo, Capital, January 1, 2018 Waldo, Capital, December 31, 2018 Prepare the classified balance sheet in report form as of December 31, 2018. Begin with the Assets section, then complete the Liabilities and Owner's Equity sections. (If a box is not used in the balance sheet, Waldo Anvils Balance Sheet December 31, 2018 Assets Less: Liabilities Owner's Equity MI Requirement 5. Prepare the closing entries and post to the accounts. Begin by preparing the closing entries (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Start by closing revenue. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (1) Close expenses for the period. Accounts and Explanation Debit Credit Date Dec. 31 Clos. (2) Close Income Summary. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (3) Close withdrawals. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (4) Post the closing entries to the T-accounts. First, enter "Bal" and the adjusted balance of each account from the adjusted trial balance prepared in require zero balance after closing, enter a "0" on the normal side of the account. For Income Summary, calculate and enter the balance ("Bal.") before posting the Cash Accounts Payable Service Revenue Accounts Receivable Salaries Payable Salaries Expense Prepaid Rent Unearned Revenue Rent Expense Office Supplies Waldo, Capital Depreciation Expense-Equipment Equipment Waldo, Withdrawals Supplies Expense Accumulated Depr.-Equip. . Income Summary Requirement 6. Prepare a post-closing trial balance. Waldo Anvils Post-Closing Trial Balance December 31, 2018 Balance Account Title Debit Credit Total Requirement 7. Calculate the current ratio for the company. Select the labels then enter the amounts and compute the current ratio. (Round your answer to two decimal places.) Current ratio Choose from any list or enter any number in the input fields and then continue to the next