Maurice Tutor
$15/per page/Negotiable
Rockford Management Services Inc. began business on January 1, 2011, with a capital investment of $120,000. The company manages condominiums for owners (Service Revenue) and rents space in its own office building (Rent Revenue). The trial balance and adjusted trialbalance columns of the worksheet at the end of the first year are as follows.
Â
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ROCKFORD MANAGEMENT SERVICES INC. |
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| Â | Â |
Worksheet |
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For the Year Ended December 31, 2011 |
 |  |
|
Account Titles |
Dr. |
Cr. |
Dr. |
Cr. |
|
Cash |
13,800 |
 |  |  |
|
Accounts Receivable |
28,300 |
 |  |  |
|
Prepaid Insurance |
3,600 |
 |  |  |
|
Land |
67,000 |
 |  |  |
|
Building |
127,000 |
 |  |  |
|
Equipment |
59,000 |
 |  |
12,500 |
|
Accounts Payable |
 |
12,500 |
 |
2,000 |
|
Unearned Rent Revenue |
 |
6,000 |
 |
120,000 |
|
Mortgage Note Payable |
 |
120,000 |
 |
100,000 |
|
Common Stock |
 |
100,000 |
 |
44,000 |
|
Retained Earnings |
 |
44,000 |
 |
12,500 |
|
Dividends |
22,000 |
 |  |  |
|
Service Revenue |
 |
90,700 |
 |
90,700 |
|
Rent Revenue |
 |
29,000 |
 |
33,000 |
|
Salaries Expense |
42,000 |
 |  |  |
|
Advertising Expense |
20,500 |
 |  |  |
|
Utilities Expense |
19,000 |
 |  |  |
|
Totals |
402,200 |
402,200 |
 |  |
|
Insurance Expense |
 |  |
1,200 |
 |
|
Depreciation Expense—Building |
 |  |
3,000 |
 |
|
Accumulated Depreciation—Building |
 |  |  |
3,000 |
|
Depreciation Expense—Equipment |
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4,700 |
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|
Accumulated Depreciation—Equipment |
 |  |  |
4,700 |
|
Interest Expense |
 |  |
11,000 |
 |
|
Interest Payable |
 |  |  |
11,000 |
|
Totals |
 |  |
420,900 |
420,900 |
Instructions
(a) Prepare a complete worksheet.
(b) Prepare a classified balance sheet. (Note: $20,000 of the mortgage note payable is due for payment next year.)
(c) Journalize the adjusting entries.
(d) Journalize the closing entries.
(e) Prepare a post-closing trial balance.