Reference no: EM13257096

st. denis inc kept record without accountant, after mucheffort outside accountant prepared unadjusted trial balance as of the end of annual accounting peiord dec. 31, 2007

accounttitle                                               debit                               credit

cash                                                            60000

accountsreceivable                                     13000

supplies                                                      800

prepaidinsurance                                         1000

servicetrucks                                              20000

accumulated depreciation, servicetrucks                                               12000

otherassets                                                 11200

accountspayable                                                                                 3000

income taxpayable                                                                                    

notes payable(3yrs; 10% interest due eachdec31)                                     20000

contributed capital(5000 sharesoutstanding)                                              28200

retainedearnings                                                                                     7500

servicerevenue                                                                                       77000

remaining expense(not detailed;exclude income tax)  41700                                                                    

                                                                     ------                           ----------

                                                                   $147,700                            $147,700

data not yet recorded at dec 31, 2007

a. supplies counted on dec 31, 2007, reflected $300 remainingon hand to be used in 2008

b. insurance expired during 2007; $500

c. depreciation expense for 2007; $4000

d. wages earned by employees not yet paid on dec. 31, 2007;$900

e. income tax expense was $7350 ---------------------

required:

prepare an income statement and a classified balance sheetthat include the effects of the preceding 5(a-e) transactions.