The following unadjusted trial balance has been prepared for Sellit Realty Corporation at the end of its first year of operations, December 31, 2016:
The following additional information is available:
|
a. |
Prepaid rent represents equal amounts of rent for the months of December 2016, and January and February 2017. |
|
b. |
A physical count indicates that $200 of supplies is on hand at December 31. |
|
c. |
The equipment was purchased on July 1; it has an estimated useful life of 3 years. |
|
d. |
Wages of $300 for December 30 and 31 are unpaid; they will be included in the first Friday’s payment in January. |
|
e. |
Revenue includes $2,500 received for commissions that will be earned in 2017. |
|
f. |
Unrecorded interest expense amounts to $150. |
|
g. |
Income taxes expense amounts to $200. This will be paid in the next fiscal year. |
Required:
- Prepare all necessary adjusting entries at December 31, 2016. Include general ledger account numbers and calculations as needed. Descriptions are not necessary.
- Prepare an adjusted trial balance.
- 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.
- 1883 reads
