Project - The unadjusted Trial Balance of LMN Services, at December 31, 2016. Follows:
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LMN Services Trail Balance December 31, 2016
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Account Title
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Balance
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Dr
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Cr
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Cash
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$8,000
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|
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Accounts Receivable
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6,900
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|
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Office Supplies
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370
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|
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Furniture
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10,000
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|
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Accumulated Depreciation-Furniture
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$7,000
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Building
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40,000
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|
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Accumulated Depreciation-Building
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25,000
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Land
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13,000
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Accounts Payable
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1,800
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Salaries Payable
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500
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Unearned Revenue
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5,500
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Notes Payable (Long-Term)
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9,000
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Common Stock
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14,000
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Retained Earnings
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0
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Dividends
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25,000
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Service Revenue
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63,900
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Salaries Expense
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16,500
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Supplies Expense
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730
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Depreciation Expense-Furniture
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2,500
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Depreciation Expense-Building
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1,200
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Advertising Expense
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2,500
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|
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Utilities Expense
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|
|
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Total
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$126,700
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$126,700
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Additional Information:
a. Services performed but not billed, $550.
b. $1000 of the Unearned Revenue has been earned by year-end.
c. Received December electricity bill, $350. This bill will be paid in January 2017.
d. Supply-room report shows only $250 worth of Supplies are available.
Requirements:
1. (a) Journalize adjusted entries, and (b) post the adjustments to their respective accounts (T accounts).
2. Prepare the Adjusted Trial Balance at December 31, 2016.
3. Prepare the Income Statement for the year ended December 31, 2016.
4. Prepare the Retained Earnings Statement for the year ended December 31, 2016.
Assume there were no additional investment during the year in the co.
5. Prepare the Balance Sheet as of December 31, 2016.
6. (a) Journalize and (b) post the closing entries. Indicate the balance of the Retained Earnings account after the closing entries are posted.
7. Prepare the Post-Closing Trial Balance at December 31, 2016.