Problem - The adjusted trial balance of Karise Repairs on December 31, 2017, follows.
|
KARISE REPAIRS Adjusted Trial Balance December 31, 2017
|
|
No.
|
Account Title
|
Debit
|
Credit
|
|
101
|
Cash
|
$102,000
|
|
|
124
|
Office supplies
|
1,500
|
|
|
128
|
Prepaid insurance
|
2,750
|
|
|
167
|
Equipment
|
56,000
|
|
|
168
|
Accumulated depreciation-Equipment
|
|
$5,600
|
|
201
|
Accounts payable
|
|
14,500
|
|
210
|
Wages payable
|
|
1,200
|
|
301
|
C. Karise, Capital
|
|
39,000
|
|
302
|
C. Karise, Withdrawals
|
19,500
|
|
|
401
|
Repair fees earned
|
|
184,450
|
|
612
|
Depreciation expense-Equipment
|
5,600
|
|
|
623
|
Wages expense
|
37,000
|
|
|
637
|
Insurance expense
|
1,100
|
|
|
640
|
Rent expense
|
11,500
|
|
|
650
|
Office supplies expense
|
4,400
|
|
|
690
|
Utilities expense
|
3,400
|
|
|
Totals
|
$244,750
|
$244,750
|
Assume there are no owner investments in 2017.
Required:
1a. Prepare an income statement for the year 2017.
1b. Prepare a statement of owner's equity for the year 2017.
1c. Prepare a classified balance sheet at December 31, 2017.
2. Complete the work sheet using the adjusted trial balance in the first two columns of a six-column table. Use columns three and four for closing entry information and the last two columns for a post-closing trial balance.
3. Using information from the work sheet in Requirement 2, prepare the appropriate closing entries.