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The adjusted trial balance columns of the worksheet for Rachel Company, owned by Toni Rachel, are as follows.
Instructions
(a) Complete the worksheet by extending the balances to the financial statement columns.
(b) Prepare an income statement, owner's equity statement, and a classified balance sheet. (Note: $9,000 of the notes payable become due in 2011.) Toni Rachel did not make any additional investments in the business during the year.
(c) Prepare the closing entries. Use J14 for the journal page.
(d) Post the closing entries. Use the three-column form of account. Income Summary is No. 350.
(e) Prepare a post-closing trial balance.
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