Waldo Anvils Unadjusted Trial Balance December 31, 2024 Balance Account Title Debit Credit Cash 12,150 Accounts Receivable 16,500 Prepaid Rent 2,050 Office Supplies 2,600 32,000 Equipment Accumulated DepreciationEquipment Accounts Payable $ 2,000 6,400 Salaries Payable 0 Unearned Revenue 6,800 33,000 Waldo, Capital Waldo, Withdrawals 3,000 Service Revenue 22,500 Waldo, Withdrawals 3,000 Service Revenue 22,500 Salaries Expense 2,400 Rent Expense 0 Depreciation Expense-Equipment 0 0 Supplies Expense $ 70,700 $ 70,700 Total 1. Prepare the adjusting entries, and post to the accounts. T-accounts have been opened using the balances from the unadjusted trial balance. 2. Prepare an adjusted trial balance. 3. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in report form. (Assume that there were no contributions made by the owner during the year.) 4. Prepare the closing entries, and post to the accounts. 5. Prepare a post-closing trial balance. 6. Calculate the current ratio for the company. Requirement 1. Prepare the adjusting entries, and post to the accounts. T-accounts have been opened using the from the unadjusted trial balance. Begin by preparing the adjusting entries. (Record debits first, then credits. Select the explanation on the last line o journal entry table.) a. Unearned Revenue still unearned at December 31, $3,300. Date Accounts and Explanation Debit Credit Dec. 31 Adj. (a) b. Prepaid Rent still in force at December 31, $1,900. Date Accounts and Explanation Debit Credit Dec. 31 Adj. (b) c. Office Supplies used, $900. Date Accounts and Explanation Debit Credit Dec. 31 Adj. (c) d. Depreciation, $290. Date Accounts and Explanation Debit Credit Dec. 31 Adj. (d) e. Accrued Salaries Expense at December 31, $180. Date Accounts and Explanation Debit Credit Den 21 Post the adjusting entries to the l-accounts. The unadjusted balances of the accounts ("Bal.") have been entered for you. Use the adjustment and corresponding letters as posting references"Adj. (a)", "Adj. (b)", etc. Use a "Bal." posting reference on the last line of each T-account to show the adjusted balance of each account. (Abbreviations used: Depr. Depreciation; Equip. = Equipment.) = Cash Service Revenue Accounts Payable 6,400 Bal. Bal. 12,150 22,500 Bal. Accounts Receivable Salaries Payable Salaries Expense Bal. 16,500 O Bal. Bal. 2,400 Prepaid Rent Unearned Revenue Rent Expense Bal. 2,050 6,800 Bal. Bal. 0 Office Supplies Waldo, Capital Depreciation Expense-Equip. Bal. 2,600 33,000 Bal. Bal. 0 Equipment Waldo, Withdrawals Supplies Expense Bal. 32,000 Bal. 3,000 Bal. 0 Accumulated Depr.-Equip. 2,000 Bal. Requirement 2 Prepare an adiusted trial balance quirem 2. Prepare an adjusted trial balance. Waldo Anvils Adjusted Trial Balance December 31, 2024 Balance Account Title Debit Credit Requirement 3. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in report form. Assume that there were no contributions made by the owner during the year. 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, 2024 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. Assume that there were no contributions made by the owner during the year. (Exclude any zero-balance events for the period from the statement of owner's equity.) Waldo Anvils Statement of Owner's Equity Year Ended December 31, 2024 Waldo, Capital, January 1, 2024 Waldo, Capital, December 31, 2024 Prepare the classified balance sheet in report form as of December 31, 2024. Prepare the classified balance sheet in report form as of December 31, 2024. Begin with the Assets section, then complete the Liabilities and Owner's Equity sections. (If a box is not used in the balar sheet, leave the box empty; do not select a label or enter a zero.) Waldo Anvils Balance Sheet December 31, 2024 Assets Less: Less: Liabilities Owner's Equity III 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)
