Prepare an income statement for the year 2017

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Reference no: EM132381133

Problem

Preparing trial balances, closing entries, and financial statements

The adjusted trial balance of Karise Repairs on December 31. 2017. follows.

                                          KARISE REPAIRS
                                      Adjusted Trial Balance

No.

December 31, 2017 Account Title

Debit

Credit

101
124
128

Cash

Office supplies Prepaid insurance

5 70,000 1,800 2,950

 

167

Equipment

56,000

 

168

Accumulated depreciation-Equipment

 

5     5,600

281

Accounts payable

 

13,500

210

Wages payable

 

800

301

C.       Karise, Capital

 

31,000

302

C. Karise, Withdrawals

16,000

 

401

Repair fees earned

 

164,350

612

Depreciation expense-Equipment

5,600

 

623

Wages expense

38,000

 

637

Insurance expense

1,100

 

640

Rent expense

15,500

 

650

Office supplies expense

4,400

 

 

690

Utilities expense

3,900

 

 

Totals

5215,250

5215,250

Assume there are no owner investments in 2017.

Required:

1a. Prepare an income statement for the year 2017.

1b. Prepare a statement of owner's equity for the year 2017.

1c. Prepare a classified balance sheet at December 31. 2017.

2 Complete the work sheet using the adjusted trial balance In the first two columns of a six-column table. Use columns three and four for closing entry information and the last two columns for a post-closing trial balance.

3. Using information from the work sheet in Requirement 2. prepare the appropriate closing entries.

Reference no: EM132381133

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