The adjusted trial balance of Maytagg Repairs on December 31, 2011, follows.

Required

1. Prepare an income statement and a statement of retained earnings for the year 2011, and a classified balance sheet as of December 31, 2011.

2. Enter the adjusted trial balance in the first two columns of a six-column table. Use columns three and four for closing entry information and the last two columns for a post-closing trial balance see the headings below. Insert an Income Summary account as the last row in the trial balance.

3. Enter closing entry information in the six-column table and prepare journal entries for them.

Analysis Component

4. Assume for this part only that:

a. None of the $1,600 insurance expense had expired during the year. Instead, assume it is a prepayment of the next period's insurance protection.

b. There are no earned and unpaid wages at the end of the year.
Describe the financial statement changes that would result from these two assumptions.

Transcribed Image Text:

MAYTAGG REPAIRS Adjusted Trial Balance December 31, 2011 No. 10 Cash 124 Office supplies.. Account Title Debit Credit 2,000 2,150 53,000 $ 8,000 9,000 68 Accumulated depreciation-Equipment.. 210 Wages payable.. 307 Common stock 318 Retained earnings . 319 Didends.. 40 Repair fees earned 612 Depreciation expense Equipment 623 Wages expense.. 3,200 21,600 16,500 91,150 7,000 38,000 1,600 11,400 5,600 3.400 640 Rent expense. 650 Office supplies expense . Totals. Adjusted Trial Balance Post-Closing Trial Balance Closing Entries Information No. Account Title Dr Cr. Dr. Ce. Dr. Cr.