MBA UNIT 2 ASSIGNMENT 2 P4-7
P4-7 Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including
Tunstall, Inc.,
... [Show More] a small service company, keeps its records without the help of an accountant. After much effort, prepared the following unadjusted trial balance as of the end of the annual accounting period, December 31, 2
Account Titles Debit Credit
Cash $ 42,000
Accounts receivable 11,600
Supplies 900
Prepaid insurance 800
Service trucks 19,000
Accumulated depreciation $ 9,200
Other assets 8,300
Accounts payable 3,000
Wages payable
Income taxes payable
Note payable (3 years; 10% interest due each December 31) 17,000
Common stock (5,000 shares outstanding) 400
Additional paid-in capital 19,000
Retained earnings 6,000
Service revenue 61,360
Remaining expenses (not detailed; excludes income tax) 33,360
Income tax expense
Totals $ 115,960 $ 115,960
Data not yet recorded at December 31, 2014, included:
a. The supplies count on December 31, 2014, reflected $300 remaining supplies on hand to be use
b. Insurance expired during 2014, $800.
c. Depreciation expense for 2014, $3,700.
d. Wages earned by employees not yet paid on December 31, 2014, $640.
e. Income tax expense, $5,540.
Required:
1 Record the 2014 adjusting entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transaction General Journal Debit Credit
a. Supplies expense 600
Supplies 600
b. Insurance Expense 800
Prepaid insurance 800
c. Depreciation expense 3,700
Accumulated depreciation 3,700
d. Wages expense 640
Wages payable 640
e. Income taxes expense 5,540
Income taxes payable 5,540
Required:
2-a. Prepare an income statement that includes the effects of the preceding five transactions. (Round "Earnings per share" to 2 decimal places.)
TUNSTALL, INC.
Income Statement
For the Year Ended December 31, 2014
Operating revenue:
Service revenue $ 61,360
Operating expenses:
Depreciation expense 3,700
Interest expense 800
Supplies 600
Wages expense 640
Remaining expenses (not detailed) 33,360
Total expenses 39,100
Operating income 22,260
Income taxes expense 5,540
Net income $ 16,720
Earnings per share $ 3.34
Required:
2-b. Prepare a classified balance sheet that includes the effects of the preceding five transactions. (Amounts to be deducted should be indicated by a minus sign.)
Required:
3 Record the 2014 closing entry. (If no entry is required for a transaction/event, select "No jour
Transaction General Journal Debit Credit
1
Service revenue 61,360
Depreciation expense 3,700
Income taxes expense 5,540
Insurance expense 800
Remaining expenses (not detailed) 33,360
Retained earnings 16,720
Supplies 600
Wages expense 640
Earnings per Share LO4-1, 4-2, 4-4
an outside accountant 014:
d in 2015.
TUNSTALL, INC.
Balance Sheet
At December 31, 2014
Assets Liabilities and Stockholders’ Equity
Current assets: Current liabilities:
Cash 42,000 Accounts payable 3,000
Accounts receivable 11,600 Wages payable 640
Supplies 300 Income taxes payable 5,540
Total current assets 53,900 Total current liabilities 9,180
Notes payable, long-term 17,000
Service trucks 19,000
Accumulated depreciation (12,900) Total liabilities 26,180
Other assets 8,300 Stockholders' equity:
Additional paid-in capital 19,000
Common Stock 400
Retained earnings 22,720
Total stockholders' equity 42,120
Total assets $ 68,300 Total liabilities and
stockholders' equity $ 68,300
nal entry required" in the first account field.)
P4-7 Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement
Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After muc prepared the following unadjusted trial balance as of the end of the annual accounting period, Decem
Account Titles Debit Credit
Cash $ 42,000
Accounts receivable 11,600
Supplies 900
Prepaid insurance 800
Service trucks 19,000
Accumulated depreciation $ 9,200
Other assets 8,300
Accounts payable 3000
Wages payable
Income taxes payable
Note payable (3 years; 10% interest due each December 31) 17000
Common stock (5,000 shares outstanding) 400
Additional paid-in capital 19000
Retained earnings 6000
Service revenue 61360
Remaining expenses (not detailed; excludes income tax) 33,360
Income tax expense
Totals $ 115,960 $ 115,960
Data not yet recorded at December 31, 2014, included:
a. The supplies count on December 31, 2014, reflected $300 remaining supplies on hand t
b. Insurance expired during 2014, $800.
c. Depreciation expense for 2014, $3,700.
d. Wages earned by employees not yet paid on December 31, 2014, $640.
e. Income tax expense, $5,540.
Required:
1 Record the 2014 adjusting entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transaction General Journal Debit Credit
a.
b.
c.
d.
e.
Required:
2-a. Prepare an income statement that includes the effects of the preceding five transacti (Round "Earnings per share" to 2 decimal places.)
TUNSTALL, INC.
Income Statement
For the Year Ended December 31, 2014
Operating revenue:
Operating expenses:
Total expenses -
Net income $16,720
Earnings per share
Required:
2-b. Prepare a classified balance sheet that includes the effects of the preceding five trans (Amounts to be deducted should be indicated by a minus sign.)
Required:
3 Record the 2014 closing entry. (If no entry is required for a transaction/event, select
Transaction General Journal Debit Credit
1
Including Earnings per Share LO4-1, 4-2, 4-4
h effort, an outside accountant ber 31, 2014:
o be used in 2015.
ons.
actions.
TUNSTALL, INC.
Balance Sheet
At December 31, 2014
Assets Liabilities and Stockholders’ Equity
Current assets: Current liabilities:
Total current assets - Total current
liabilities -
Total liabilities -
Stockholders' equity:
Total stockholders'
equity -
Total assets $ - Total liabilities and
stockholders' equity $ -
"No journal entry required" in the first account field.) [Show Less]
