The following is the adjusted trial balance for Jones Accounting Services for the year ended December 31, 2021 Jones Accounting Services Adjusted Trial Balance December 31, 2021 Account Title Dr Cr Accounts payable 6,300 Accounts Receivable 9,000 Accumulated Depreciation Building 41,000 Accumulated Depreciation Equipment $4,200 Building 350,000 Cash $98,000 Depreciation expense, building 7,000 Depreciation expense, equipment 800 Insurance expense 5,200 Interest payable 2,000 Land 700,000 Long-term note payable 52,000 Mike Jones, Capital 1,010,000 Mike Jones, Withdrawals 200,500 Office equipment 8,000 Office supplies 3,300 Prepaid Insurance 9,000 Prepaid Rent 15,000 Rent expense 6,000 Salaries expense 89,000 Salaries payable 14,500 Service fees earned 370,800 Totals $1,500,800 $1,500,800 Additional Information: A $5,000 installment on the long-term note payable is due within one year. Mike Jones invested $15,000 into her business during the year. Required: Prepare in an Income Statement for the Year Ended December 31, 2021. Prepare a Statement of Owner’s Equity for the Year Ended December 31, 2021. Prepare a Classified Balance Sheet as at December 31, 2021.

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter3: The Adjusting Process

Section: Chapter Questions

Problem 5PB: Reece Financial Services Co., which specializes in appliance repair services, is owned and operated...

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Question

The following is the adjusted trial balance for Jones Accounting Services for the year ended December 31, 2021

Jones Accounting Services

Adjusted Trial Balance

December 31, 2021

Account Title

Accounts payable		6,300
Accounts Receivable	9,000
Accumulated Depreciation Building		41,000
Accumulated Depreciation Equipment		$4,200
Building	350,000
Cash	$98,000
Depreciation expense, building	7,000
Depreciation expense, equipment	800
Insurance expense	5,200
Interest payable		2,000
Land	700,000
Long-term note payable		52,000
Mike Jones, Capital		1,010,000
Mike Jones, Withdrawals	200,500
Office equipment	8,000
Office supplies	3,300
Prepaid Insurance	9,000
Prepaid Rent	15,000
Rent expense	6,000
Salaries expense	89,000
Salaries payable		14,500
Service fees earned		370,800
Totals	$1,500,800	$1,500,800

Additional Information:

Required:

Prepare in an Income Statement for the Year Ended December 31, 2021.
Prepare a Statement of Owner’s Equity for the Year Ended December 31, 2021.
Prepare a Classified Balance Sheet as at December 31, 2021.
Calculate Working Capital, the Current Ratio and Acid-Test Ratio at December 31, 2021 and comment on the company’s liquidity.
Prepare the Closing Entries at December 31, 2021 in a general journal.

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