The trial balance of Giambi 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, $5,000.
c. Depreciation for the year, $8,000.
d. Accrued salary expense, $1,000.
e. Accrued service revenue, $3,000.

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? Give the reason for your answer.(Challenge)

Transcribed Image Text:

GIAMBI INVESTMENT ADVISERS Trial Balance December 31, 2012 Balance Debit Credit Account Cash Accounts receivable Supplies Equipment Accumulated depreciation Accounts payable Salary payable Unearned service revenue Note payable, long-term Giambi, capital Giambi, drawing Service revenue S 28,000 50,000 8,000 26,000 S 16,000 14,000 1,000 44,000 40,000 50,000 97,000 Salary expense Supplies expense Depreciation expense Interest expense Rent expense Insurance expense Total 7,000 7,000 $212,000 $212,000