The ledger and trial balance of Wizard Services Co. as of July 31, 2012, the end of the first month of its current fiscal year, are presented in the working papers.

Data needed to determine the necessary adjusting entries are as follows:

a. Service revenue accrued at July 31 is $1,000.

b. Supplies on hand at July 31 are $3,900.

c. Insurance premiums expired during July are $1,100.

d. Depreciation of the building during July is $1,400.

e. Depreciation of equipment during July is $900.

f. Unearned rent at July 31 is $700.

g. Wages accrued at July 31 are $100.

Instructions

1. Optional: Complete the end-of-period spreadsheet (work sheet) using the adjustment data shown above.

2. Journalize and post the adjusting entries, inserting balances in the accounts affected.

3. Prepare an adjusted trial balance.

4. Prepare an income statement, a statement of owner’s equity, and a balance sheet.

5. Journalize and post the closing entries. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. Insert the new balance of the capital account.

6. Prepare a post-closing trial balance.