The unadjusted trial balance of Wolfe Anvils at December 31, 2014, and the data for the adjustments follow:

Adjustment data:
a. Unearned Revenue still unearned at December 31, $ 1,200.
b. Prepaid Rent still in force at December 31, $ 2,500.
c. Office Supplies used, $ 1,000.
d. Depreciation, $ 300.
e. Accrued Salaries Expense at December 31, $ 200.

Requirements
1. Open the T-accounts using the balances in the unadjusted trial balance.
2. Prepare the adjusting entries and post to the accounts.
3. Prepare an adjusted trial balance.
4. Complete the worksheet for the year ended December 31, 2014. (Optional)
5. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form.
6. Prepare the closing entries and post to the accounts.
7. Prepare a post- closing trial balance.
8. Calculate the current ratio for thecompany.

Transcribed Image Text:

WOLFE ANVIL Unadjusted Thal Balance December 31, 2014 Balance Account Title 4,300 Accounts Receivable Prepaid Rent Office Suppies 1,600 31,200 Accumuated Depreciation- Equipment Accounts Payabie Salaries Payable Uhearned Revenue Common Stock Retaned Earnings Dividends Service Revenue Salaries Expense Rant Expanse 3.000 6,900 20,000 6,600 3,500 18,900 2,500 Supplies Expense S 60,800 60800