Acc205 Principles of Accounting: P4-25A The trial balance of Fugazy Investment Advisers, Inc

Acc205 Principles of Accounting

P4-25A Preparing a worksheet, financial statements, and closing entries
The trial balance of Fugazy Investment Advisers, Inc., at December 31, 2012, follows:
FUGAZY INVESTMENT ADVISERS, INC.
Trial Balance
December 31, 2012
Account Debit Credit
Cash 32,000
Accounts receivable 46,000
Supplies 3,000
Equipment 25,000
Accumulated depreciation 11,000
Accounts payable 15,000
Salary payable
Unearned service revenue 2,000
Note payable, long-term 39,000
Common stock 17,600
Retained earnings 20,400
Dividends 50,000
Service revenue 97,000
Salary expense 32,000
Supplies expense
Depreciation expense
Interest expense 3,000
Rent expense 9,000
Insurance expense 2,000
Total $202,000 $202,000

Adjustment data at December 31, 2012:
a. Unearned service revenue earned during the year, $500.
b. Supplies on hand, $1,000.
c. Depreciation for the year, $6,000.
d. Accrued salary expense, $1,000.
e. Accrued service revenue, $4,000.

Requirements
1. Enter the account data in the Trial Balance columns of a worksheet, and complete the worksheet through the Adjusted Trial Balance. Key each adjusting entry by the letter corresponding to the data given. Leave a blank line under Service revenue.
2. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in account format.
3. Prepare closing journal entries from the worksheet.
4. Did the company have a good or a bad year during 2012? Give the reason for your answer.
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