The trial balance of Fugazy Investment Advisers at December 31, 2012, follows:

Adjustment data at December 31, 2012:
a. Unearned service revenue earned during the year, $500.
b. Supplies on hand, $1,000.
c. Depreciation for the year, $6,000.
d. Accrued salary expense, $1,000.
e. Accrued service revenue, $4,000.

Requirements
1. Enter the account data in the Trial Balance columns of a worksheet, and complete the worksheet through the Adjusted Trial Balance. Key each adjusting entry by the letter corresponding to the data given. Leave a blank line under Service revenue.
2. Prepare the income statement, the statement of owner€™s equity, and the classified balance sheet in account format.
3. Prepare closing journal entries from the worksheet.
4. Did the company have a good or a bad year during 2012?

Transcribed Image Text:

FUGAZY INVESTMENT ADVISERS Trial Balance December 31, 2012 Balance Debit Credit Account Cash Accounts receivable Supplies S 32,000 46,000 3,000 25,000 quipment Accumulated depreciation Accounts payabic Salary payable Uncarned service revenue Note payable, long-term Fugazy, capital Fugazy, drawing Service revenue S 11,000 15,000 2,000 39,000 38,000 50,000 97,000 Salary expense Supplies expense Depreciation expensc Interest expense Rent expense Insurance expense Total 32,000 3,000 9,000 2,900 $202,000 $202.000