FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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  • Prepare an income statement for the year ended December 31, 20Y5.

    Answer

    Check Figure: Net income, $137,400

  • Prepare a statement of stockholders’ equity for the year ended December 31, 20Y5. During the year, common stock of $25,000 was issued.

  • Prepare a balance sheet as of December 31, 20Y5.

  • Based upon the end-of-period spreadsheet, journalize the closing entries.

  • Prepare a post-closing trial balance

PR 4-1A Financial Statements and Closing Entries
Obj. 1, 2, 3
Beacons Company maintains and repairs warning lights, such as those found on radio
towers and lighthouses. Beacons Company prepared the following end-of-period
spreadsheet at December 31, 20Y5, the end of the fiscal year:
c | D | E |
B
Beacons Company
End-of-Period Spreadsheet
A
G
1
For the Year Ended December 31, 20Y5
Unadjusted
Trial Balance
Adjusted
Trial Balance
4
Adjustments
6 Account Title
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
7
10,800
38,900
8 Cash
9 Accounts Receivable
10 Prepaid Insurance
11 Supplies
12 Land
13 Building
14 Accum. Depr.Building
15 Equipment
16 Accum. Depr.-Equipment
17 Accounts Payable
18 Salaries & Wages Payable
19 Uneamed Rent
20 Common Stock
21 Retained Earnings
22 Dividends
23 Fees Eamed
24 Rent Revenue
25 Salaries & Wages Expense
26 Advertising Expense
27 Utlities Expense
28 Depr. Exp.-Building
29 Repairs Expense
30 Depr. Exp.-Equipment
31 Insurance Expense
32 Supplies Expense
33 Misc. Expense
10,800
9,100
4,200
2,730
98,000
48,000
1,050
550
98,000
3,150
2,180
400,000
400,000
205,300
12,000
217,300
101,000
101,000
85, 100
15,700
4,800
89,900
15,700
5,000
1,000
75,000
5,000
2,100
1,100
75,000
128,100
128,100
10,000
10,000
9,100
1,100
372,800
1,100
363,700
158, 100
5,000
163,100
21,700
21,700
16,400
16,400
12,000
12,000
8,850
4,800
3,150
2,180
8,850
4,800
3,150
2,180
4,320
875.000 875.000
4,320
37,330 905,900 905.900
34
37,330
35
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Transcribed Image Text:PR 4-1A Financial Statements and Closing Entries Obj. 1, 2, 3 Beacons Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacons Company prepared the following end-of-period spreadsheet at December 31, 20Y5, the end of the fiscal year: c | D | E | B Beacons Company End-of-Period Spreadsheet A G 1 For the Year Ended December 31, 20Y5 Unadjusted Trial Balance Adjusted Trial Balance 4 Adjustments 6 Account Title Dr. Cr. Dr. Cr. Dr. Cr. 7 10,800 38,900 8 Cash 9 Accounts Receivable 10 Prepaid Insurance 11 Supplies 12 Land 13 Building 14 Accum. Depr.Building 15 Equipment 16 Accum. Depr.-Equipment 17 Accounts Payable 18 Salaries & Wages Payable 19 Uneamed Rent 20 Common Stock 21 Retained Earnings 22 Dividends 23 Fees Eamed 24 Rent Revenue 25 Salaries & Wages Expense 26 Advertising Expense 27 Utlities Expense 28 Depr. Exp.-Building 29 Repairs Expense 30 Depr. Exp.-Equipment 31 Insurance Expense 32 Supplies Expense 33 Misc. Expense 10,800 9,100 4,200 2,730 98,000 48,000 1,050 550 98,000 3,150 2,180 400,000 400,000 205,300 12,000 217,300 101,000 101,000 85, 100 15,700 4,800 89,900 15,700 5,000 1,000 75,000 5,000 2,100 1,100 75,000 128,100 128,100 10,000 10,000 9,100 1,100 372,800 1,100 363,700 158, 100 5,000 163,100 21,700 21,700 16,400 16,400 12,000 12,000 8,850 4,800 3,150 2,180 8,850 4,800 3,150 2,180 4,320 875.000 875.000 4,320 37,330 905,900 905.900 34 37,330 35
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