Vang Management Services began business on January 1, 2017, with a capital investment of $120,000. The company
Question:
Vang Management Services began business on January 1, 2017, with a capital investment of $120,000. The company manages condominiums for owners (Service Revenue) and rents space in its own office building (Rent Revenue). The trial balance and adjusted trial balance columns of the worksheet at the end of the first year are as follows.
Instructions
(a) Prepare a complete worksheet.
(b) Prepare a classified balance sheet. ($30,000 of the mortgage note payable is due for payment next year.)
(c) Journalize the adjusting entries.
(d) Journalize the closing entries.
(e) Prepare a post-closing trial balance.
VANG MANAGEMENT SERVICES Worksheet For the Year Ended December 31, 2017 Trial Balance Trial Balance Account Titles Dr 13,800 28,300 3,600 67,000 127,000 59,000 Cr Dr 13,800 28,300 2,400 67,000 127,000 59,000 Accounts Receivable Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Owner's Drawings 12,500 6,000 120,000 144,000 12,500 1,500 120,000 144,000 22,000 22,000 90,700 29,000 90,700 33,500 Rent Revenue Salaries and Wages Expense Advertising Expense Utilities Expense 42,000 20,500 19,000 42,000 20,500 19,000 Totals 402,200 402,200 Adjusted Trial Balance Trial Balance Account Titles Cr Cr 1,200 6,600 Insurance Expense Depreciation Expense Accumulated Depreciation Buildings Accumulated Depreciation Equipment Interest Expense Interest Payable 3,000 3,600 10,000 10,000 418,800 Totals 418,800
Step by Step Answer:
a VANG MANAGEMENT SERVICES Worksheet For the Year Ended December 31 2017 Key a Expired Insurance b D...View the full answer
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Related Video
A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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