Pablo Bicarso |
Unadjusted Trial Balance |
31-Dec-02 |
Account Title |
Debit $ |
Credit $ |
Cash |
22,380 |
|
Client Fees Receviable |
71,250 |
|
Supplies |
6,000 |
|
Prepaid Studio Rent |
2,500 |
|
Studio Equipment |
96,000 |
|
Accumulated Dep. Studio Equipment |
|
52,000 |
Accounts Payable |
|
11,420 |
Interest Payable |
|
480 |
Note Payable |
|
24,000 |
Unearned Client Fees |
|
8,000 |
Pablo Bicarso, Capital |
|
70,000 |
Pablo Bicarso, withdrawals |
5,000 |
|
Client Fees Earned |
|
82,310 |
Supplies Expense |
4,000 |
|
Salary Expense |
17,250 |
|
Interest Expense |
480 |
|
Studio Rent Expense |
11,250 |
|
Utilities Expense |
3,300 |
|
Depreciation Expense: Studio Equipment |
8,800 |
|
|
|
|
Total |
248,210 |
248,210 |
Other Data:
i) Supplies on hand at December 31, 2002, total $1,000.
ii) The studio pays rent quarterly (every three months) in advance. The last payment was
made November 1, 2002. The next payment will be made in February 2003.
iii) Studio equipment is being depreciated over 120 months (10 years).
iv) On October 1, 2002, Pablo Bicarso borrowed $24,000 by signing a 12-month, 12%
note payable. The entire amount, plus interest, is due on September 30, 2003.
v) At December 31, 2002, $3,000 of previously unearned client fees had been earned.
vi) Accrued, but unrecorded and uncollected client fees earned total $690 at December
31, 2002
vii) Accrued, but unrecorded and unpaid salary expense totals $750 at December 31,
2002.
Required:
a) Prepare the necessary adjusting journal entries on December 13, 2002. Prepare
the accountant’s worksheet dated December 31, 2002
b) From the adjusted trial balance, prepare an income statement and statement of
owner’s equity for the year ended December 31, 2002. Also prepare the entity’s
classified balance sheet dated December 31, 2002.
c) Prepare the necessary year-end closing entries.
d) Prepare a post-closing trial balance.