Reference no: EM13492270

Suppose a company prepares the following unadjusted trial balance as of December 31.

Account Titles	Debit		Credit
Cash	$19,600
Accounts receivable	7,000
Supplies	1,300
Prepaid insurance	900
Equipment	27,000
Accumulated depreciation			$12,000
Other assets	5,100
Accounts payable			2,500
Wages payable
Income taxes payable
Note payable			5,000
Contributed Capital (3,000 shares outstanding all year)			16,000
Retained earnings			10,300
Service revenue			48,000
Other expenses	32,900
Income tax expenses
Totals	$93,800		$93,800

 

The following data has not been recorded at December 31.

(a)    Depreciation expense for the year, $3,000.

(b)   Wages earned by employees but not yet paid amount to $2,100.

(c)    The supplies count on December 31 reflected $800 remaining supplies on hand to be used the following year.

(d)   Insurance expired during the year, $450.

(e)   Income tax expense was $3,150.

Record the adjusting entries. Prepare an income statement with earnings per share assuming there are 3,000 shares. Prepare a classified balance sheet for the year. For the income statement and balance sheet, include the effects of the preceding five data items.