Prepare an income statement for the year

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Reference no: EM131622093

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

KARISE REPAIRS Adjusted Trial Balance December 31, 2017

No.

Account Title

Debit

Credit

101

Cash

$102,000


124

Office supplies

1,500


128

Prepaid insurance

2,750


167

Equipment

56,000


168

Accumulated depreciation-Equipment


$5,600

201

Accounts payable


14,500

210

Wages payable


1,200

301

C. Karise, Capital


39,000

302

C. Karise, Withdrawals

19,500


401

Repair fees earned


184,450

612

Depreciation expense-Equipment

5,600


623

Wages expense

37,000


637

Insurance expense

1,100


640

Rent expense

11,500


650

Office supplies expense

4,400


690

Utilities expense

3,400



Totals

$244,750

$244,750

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: EM131622093

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