Connect Acct 211 Individual Project (Spring 2014)

Problem 4-4A Preparing trial balances, closing entries, and financial statements LO C3, P2, P3

[The following information applies to the questions displayed below.]

The adjusted trial balance of Karise Repairs on December 31, 2013, follows.

KARISE REPAIRS

Adjusted Trial Balance

December 31, 2013

No.

Account Title

Debit

Credit

101

Cash

$

20,000

124

Office supplies

1,600

128

Prepaid insurance

2,950

167

Equipment

59,000

168

Accumulated depreciation—Equipment

$

5,900

201

Accounts payable

14,500

210

Wages payable

900

301

C. Karise, Capital

34,000

302

C. Karise, Withdrawals

18,500

401

Repair fees earned

115,150

612

Depreciation expense—Equipment

5,900

623

Wages expense

42,000

637

Insurance expense

1,200

640

Rent expense

11,500

650

Office supplies expense

3,700

690

Utilities expense

4,100

Totals

$

170,450

$

170,450

Required:

1.1 Prepare an income statement for the year 2013.

1.2 Prepare a statement of owner's equity for the year 2013.

1.3 Prepare a classified balance sheet at December 31, 2013.

2.

Problem 4-4A Part 2

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.

Problem 4-4A Part 3

3. Using the closing entry information you entered in the six-column table above, prepare the appropriate closing journal entries.