Following is the unadjusted trial balance of Pape Pens Corporation at the end of its first year of operations, December 31, 2016:
The following additional information is available:
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a. |
Prepaid insurance at December 31 amounts to $600. |
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b. |
A physical count indicates that $300 of supplies is still on hand at December 31. |
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c. |
The truck was purchased on July 1; it has an estimated useful life of 4 years. |
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d. |
One day of salaries for December 31 is unpaid; the unpaid amount of $200 will be included in the first Friday payment in January. |
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e. |
The balance in the Unearned Rent Revenue account represents six months rental of warehouse space, effective October 1. |
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f. |
A $100 bill for December telephone charges has not yet been recorded. |
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g. |
Income taxes expense for the year is $300. This amount will be paid in the next fiscal year. |
Required:
- Prepare all necessary adjusting entries at December 31, 2016, including general ledger account numbers. Descriptions are not needed.
- Prepare an adjusted trial balance at December 31, 2016.
- Prepare an income statement, statement of changes in equity, and balance sheet.
- Prepare closing entries including general ledger account numbers and descriptions.
- Prepare a post‐closing trial balance.
- 1758 reads
