Reference no: EM13587125

At the beginning of the month of December Toler Industries had the following balances in its Trial

Balance:

Account name	Debit	Credit
Cash	6,000
Accounts receivable	5,000
Supplies	1,000
Furniture	10,000
Accumulated depreciation - furniture		4,000
Building	50,000
Accumulated depreciation - building		30,000
Accounts payable		2,000
Unearned revenue		8,000
Retained earnings	13,000
Service revenue		60,000
Salary expense	16,000
Advertising expense	3,000
TOTAL	104,000	104,000

The following adjusting entries are required:

1. Supplies on hand at the end of the year should be $200.

2. Depreciation on furniture is $2,000.

3. Depreciation on the building is $1,000.

4. Employees worked during the month of December, but will be paid in January. The amount of the salaries is $500.

5. Service was rendered to a customer. The customer was billed $1,300. The customer will pay the invoice in February.

6. A portion of the unearned revenue was earned when services amounting to $3,000 were rendered.

Required:

1. Prepare the adjusting entries.

2. Prepare an Adjusted Trial Balance.

3. Prepare an Income Statement for the year ending 12/31/

4. Prepare the Balance Sheet as of 12/31

5. Prepare the journal entries to close the company's temporary accounts.

6. Prepare the Post-Closing Trial Balance

7. What conclusions can you make about the company based on the information provided in the financial statement? Explain thoroughly.

8. Support your comments with direct references to the information in the financial statements. For example: The company has a significant amount of debt outstanding. The liabilities section of the Balance Sheet is comprised of more than 50% debt from long term loans. (Please note: this is just an example and does not reflect the actual performance of the company)