Preparing financial statements including a classified balance sheet in report form, preparing and posting closing entries, and preparing a post-closing trial balance
The adjusted trial balance of Elias Real Estate Appraisal at June 30, 2014, follows:
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ELIAS REAL ESTATE APPRAISA
Adjusted Trial Balance
June 30, 2014
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Balance
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Account Title
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Debit
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Credit
|
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Cash
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$ 4,900
|
|
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Accounts Receivable
|
5,300
|
|
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Office Supplies
|
2,400
|
|
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Prepaid Insurance
|
1,800
|
|
|
Building
|
74,400
|
|
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Accumulated Depreciation Building
|
|
$ 26,700
|
|
Land
|
13,600
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|
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Accounts Payable
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19,500
|
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Interest Payable
|
|
8,800
|
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Salaries Payable
|
|
2,200
|
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Unearned Revenue
|
|
1,300
|
|
Notes Payable (long-term)
|
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40,000
|
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Elias, Capital
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40,500
|
|
Elias, Withdrawals
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27,900
|
|
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Service Revenue
|
|
48,200
|
|
Insurance Expense
|
4,500
|
|
|
Salaries Expense
|
33,300
|
|
|
Supplies Expense
|
600
|
|
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Interest Expense
|
8,800
|
|
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Utilities Expense
|
2,200
|
|
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Depreciation Expense-Building
|
7,500
|
|
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Total
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$ 187,200
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$ 187,200
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Requirements:
1. Prepare the company's income statement for the year ended June 30, 2014.
2. Prepare the company's statement of owner's equity for the year ended June 30, 2014. Assume that there were no contributions made by the owner during the year.
3. Prepare the company's classified balance sheet in report form at June 30, 2014.
4. Journalize the closing entries.
5. Open the T-accounts using the balances from the adjusted trial balance and post the closing entries to the T-accounts.
6. Prepare the company's post-closing trial balance at June 30, 2014.