College Accounting: Chapter 6 Mastery Problem - Elizabeth Soltis owns and operates Aunt Ibby's

College Accounting
Chapter 6 Mastery Problem
Elizabeth Soltis owns and operates Aunt Ibby's Styling Salon. A year-end worksheet is provided on the next page.

Using this information, prepare adjusting entries, financial statements, and closing entries. Soltis made no additional investments during the year.
Aunt Ibby's Styling Salon
Worksheet
For the Year Ended December 31, 20--
Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 940 940 940
Styling Supplies 1,500 a 1,450 50 50
Prepaid Insurance 800 b 650 150 150
Salon Equipment 4,500 4,500 4,500
Accum Depr - Saloon Equipment d 900 900 900
Accounts Payable 225 225 225
Wages Payable c 40 40 40
Elizabeth Soltis, Capital 2,765 2,765 2,765
Elizabeth Soltis, Drawing 12,000 12,000 12,000
Styling Fees 32,000 32,000 32,000
Wages Expense 8,000 c 40 8,040 8,040
Rent Expense 6,000 6,000 6,000
Styling Supplies Expense a 1,450 1,450 1,450
Telephone Expense 450 450 450
Utilities Expense 800 800 800
Insurance Expense b 650 650 650
Depr. Expense - Salon Equipment d 900 900 900 $34,990.00 $34,990.00 $3,040.00 $3,040.00 $35,930.00 $35,930.00 $18,290.00 $32,000.00 $17,640.00 $3,930.00
Net Income 13,710 13,710
Totals $32,000.00 $32,000.00 $17,640.00 $17,640.00
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