Reference no: EM132537616

Question - SRP Ltd has the following unadjusted trial balance as at 31 Dec 2015. 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 7,500 Share Capital (3000 shares outstanding all year) 16,000 Retained Profit 10,300 Service Revenue 48,000 COGS 32,900 Total 93,800 93,800 Note: Data not yet recorded as at 31 Dec 2015 includes the following five (5) transactions:

1) Depreciation expense for 2015 was $3,000.

2) Insurance expired during 2015 was $450.

3) Wages earned by employees but not yet paid on 31 December 2015 was $2,100.

4) The supplies count on 31 December 2015 reflected $800 remaining supplies on hand to be used in 2016.

5) Income tax expense was $3,150.

Required -

1) Record the 2015 adjusting entries.

2) Prepare income statement and a classified balance sheet for 2015 to include the effect of the five (5) transactions listed above.

3) Prepare closing entries.