Managerial Accounting: P4-40 Start from the posted T-accounts and the adjusted trial balance

Managerial Accounting 
P4-40 Completing the accounting cycle from adjusted trial balance to post-closing trial balance with an optional worksheet 
This problem continues the Daniels Consulting situation from Problem P3-45 of Chapter 3. 
Start from the posted T-accounts and the adjusted trial balance that Daniels Consulting prepared for the company at December 31. 

1. Complete the worksheet at December 31. (optional) 
2. Prepare an income statement for the month ended December 31. 
3. Prepare a statement of retained earnings for the month ended December 31. 
4. Prepare a classified balance sheet (report form) at December 31. 
5. Journalize and post the closing entries at December 31. Denote each closing amount as Clo. and each account balance as Balance. 
6. Prepare a post-closing trial balance. 

Daniels Consulting 
Adjusted Trial Balance 
December 31, 2016 
Account Title Debit Credit
Cash 17,950 
Accounts Receivable 3,600 
Office Supplies 300 
Equipment 3,600 
Accumulated Depreciation - Equipment 60 
Furniture 3,000 
Accumulated Depreciation - Furniture 50 
Accounts Payable 3,600 
Salaries Payable 685 
Unearned Revenue 1,800 
Common Stock 20,000 
Dividends 1,000 
Service Revenue 6,700 
Rent Expense 2,000 
Utilities Expense 150 
Salaries Expense 685 
Supplies Expense 500 
Depreciation Expense 110 
Total $32,895 $32,895 
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