Woods Company _Financial Statements
The completed financial statement columns of the worksheet for Woods Company are shown below.
| Account No. | Account Titles | Income Statement | Balance Sheet | ||
| Debit | Credit | Debit | Credit | ||
| 101 | Cash | $8,200 | |||
| 112 | Accounts Receivable | $7,500 | |||
| 130 | Prepaid Insurance | $1,800 | |||
| 157 | Equipment | $28,000 | |||
| 167 | Accumulated Depreciation | $8,600 | |||
| 201 | Accounts Payable | $11,700 | |||
| 212 | Salaries Payable | $3,000 | |||
| 301 | S. Woods, Capital | $34,000 | |||
| 306 | S. Woods, Drawing | 7200 | |||
| 400 | Service revenue | $44,000 | |||
| 622 | Repair Expense | $5,400 | |||
| 711 | Depreciation Expense | $2,800 | |||
| 722 | Insurance Expense | $1,200 | |||
| 726 | Salaries Expense | $35,200 | |||
| 732 | Utilities Expense | $4,000 | |||
| Totals | $48,600 | $44,000 | $52,700 | $57,300 | |
| Net Loss | $4,600 | $4,600 | |||
| $48,600 | $48,600 | $57,300 | $57,300 |
Instructions
(a) Prepare an income statement, owner’s equity statement, and a classified balance sheet.
S. Woods made an additional investment in the business of $4,000 during 2010.
(b) Prepare the closing entries.
(c) Post the closing entries and rule and balance the accounts. Use T accounts. Income Summary is account No. 350.
(d) Prepare a post-closing trial balance.