The completed financial statement columns of the worksheet for Woods Company are shown below.
|
Account No.
|
Account Titles
|
Income Statement
|
Balance Sheet
|
|
|
|
Debit
|
Credit
|
Debit
|
Credit
|
|
101
|
Cash
|
|
|
$8,200
|
|
|
112
|
Accounts Receivable
|
|
|
$7,500
|
|
|
130
|
Prepaid Insurance
|
|
|
$1,800
|
|
|
157
|
Equipment
|
|
|
$28,000
|
|
|
167
|
Accumulated Depreciation
|
|
|
|
$8,600
|
|
201
|
Accounts Payable
|
|
|
|
$11,700
|
|
212
|
Salaries Payable
|
|
|
|
$3,000
|
|
301
|
S. Woods, Capital
|
|
|
|
$34,000
|
|
306
|
S. Woods, Drawing
|
|
|
7200
|
|
|
400
|
Service revenue
|
|
$44,000
|
|
|
|
622
|
Repair Expense
|
$5,400
|
|
|
|
|
711
|
Depreciation Expense
|
$2,800
|
|
|
|
|
722
|
Insurance Expense
|
$1,200
|
|
|
|
|
726
|
Salaries Expense
|
$35,200
|
|
|
|
|
732
|
Utilities Expense
|
$4,000
|
|
|
|
|
|
Totals
|
$48,600
|
$44,000
|
$52,700
|
$57,300
|
|
|
Net Loss
|
|
$4,600
|
$4,600
|
|
|
|
|
$48,600
|
$48,600
|
$57,300
|
$57,300
|
Instructions
(a) Prepare an income statement, owner's equity statement, and a classified balance sheet.
S. Woods made an additional investment in the business of $4,000 during 2010.
(b) Prepare the closing entries.
(c) Post the closing entries and rule and balance the accounts. Use T accounts. Income Summary is account No. 350.
(d) Prepare a post-closing trial balance.