Santo Company's adjusted trial balance on December 31 follows. Adjusted Trial Balance December 31 No. Account Title Deblt Credit 101 Cash $ 14,450 125 Store supplies.. 5,140 128 Prepaid insurance 1,200 167 Equipment.... 31,000 168 Accumulated depreciation-Equipment $ 8,000 201 Accounts payable.. 1,500 Wages payable.. P. Santo, Capital. 210 2,700 301 35,650 302 P. Santo, Withdrawals. 15,000 401 Repair fees earned. 54,700 612 Depreciation expense-Equipment.. 2,000 623 Wages expense 26,400 637 Insurance expense. 600 Rent expense . Store supplies expense Utilities expense.. 640 3,600 651 1,200 690 1,960 Totals. $102,550 $102,550

Question

Required
1. Prepare an income statement and a statement of owner’s equity for the year and a classified balance
sheet at December 31. Note: The P. Santo, Capital account balance was $35,650 on December 31 of
the prior year.
2. Enter the adjusted trial balance in the first two columns of a six-column table. Use the middle two
columns for closing entry information and the last two columns for a post-closing trial balance. Insert
an Income Summary account (No. 901) as the last item in the trial balance.
3. Enter closing entry information in the six-column table and prepare journal entries for it. 

Santo Company's adjusted trial balance on December 31 follows.
Adjusted Trial Balance
December 31
No.
Account Title
Deblt
Credit
101
Cash
$ 14,450
125
Store supplies..
5,140
128
Prepaid insurance
1,200
167
Equipment....
31,000
168
Accumulated depreciation-Equipment
$ 8,000
201
Accounts payable..
1,500
Wages payable..
P. Santo, Capital.
210
2,700
301
35,650
302
P. Santo, Withdrawals.
15,000
401
Repair fees earned.
54,700
612
Depreciation expense-Equipment..
2,000
623
Wages expense
26,400
637
Insurance expense.
600
Rent expense .
Store supplies expense
Utilities expense..
640
3,600
651
1,200
690
1,960
Totals.
$102,550
$102,550
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Transcribed Image Text

Santo Company's adjusted trial balance on December 31 follows. Adjusted Trial Balance December 31 No. Account Title Deblt Credit 101 Cash $ 14,450 125 Store supplies.. 5,140 128 Prepaid insurance 1,200 167 Equipment.... 31,000 168 Accumulated depreciation-Equipment $ 8,000 201 Accounts payable.. 1,500 Wages payable.. P. Santo, Capital. 210 2,700 301 35,650 302 P. Santo, Withdrawals. 15,000 401 Repair fees earned. 54,700 612 Depreciation expense-Equipment.. 2,000 623 Wages expense 26,400 637 Insurance expense. 600 Rent expense . Store supplies expense Utilities expense.. 640 3,600 651 1,200 690 1,960 Totals. $102,550 $102,550