70.2K

Verified Solution

Link Copied!

BRUSHSTROKE ART STUDIO, INC. UNADJUSTED TRIAL BALANCE DECEMBER 31, 2015 Cash.... Client fees receivable........ Supplies Prepaid studio rent. ........ Studio equipment... Accumulated depreciation: studio equipment.. Accounts payable.. Note payable ... Interest payable ......... Unearned client fees .... Income taxes payable ... Capital stock Retained earnings ... Client fees earned Supplies expense. Salary expense.... Interest expense......... Studio rent expense.............. Utilities expense. . . . . . . . . . Depreciation expense: studio equipment.. Income taxes expense........ Debits Credits $ 22,380 71,250 6,000 2,500 96,000 $ 52,000 6,420 24,000 480 8,000 5,000 50,000 20,000 82,310 4,000 17,250 480 11,250 3,300 8,800 5,000 $248,210 $248,210 Instructions a. Prepare the necessary adjusting journal entries on December 31, 2015. Prepare also an adjusted trial balance dated December 31, 2015. b. From the adjusted trial balance prepared in part a, prepare an income statement and state- ment of retained earnings for the year ended December 31, 2015. Also prepare the company balance sheet dated December 31, 2015. c. Prepare the necessary year-end closing entries. d. Prepare an after-closing trial balance. e. Has the studio's monthly rent remained the same throughout the year? If not, has it gone w down? Explain. Refer to the Demonstration Problem illustrated in the previous chapter on pages 163 Prepare a 10-column worksheet for Internet Consulting Service, Inc., dated December 31, 20 the bottom of your worksheet, prepare a brief explanation keyed to each adjusting entry. BRUSHSTROKE ART STUDIO, INC. UNADJUSTED TRIAL BALANCE DECEMBER 31, 2015 Cash.... Client fees receivable........ Supplies Prepaid studio rent. ........ Studio equipment... Accumulated depreciation: studio equipment.. Accounts payable.. Note payable ... Interest payable ......... Unearned client fees .... Income taxes payable ... Capital stock Retained earnings ... Client fees earned Supplies expense. Salary expense.... Interest expense......... Studio rent expense.............. Utilities expense. . . . . . . . . . Depreciation expense: studio equipment.. Income taxes expense........ Debits Credits $ 22,380 71,250 6,000 2,500 96,000 $ 52,000 6,420 24,000 480 8,000 5,000 50,000 20,000 82,310 4,000 17,250 480 11,250 3,300 8,800 5,000 $248,210 $248,210 Instructions a. Prepare the necessary adjusting journal entries on December 31, 2015. Prepare also an adjusted trial balance dated December 31, 2015. b. From the adjusted trial balance prepared in part a, prepare an income statement and state- ment of retained earnings for the year ended December 31, 2015. Also prepare the company balance sheet dated December 31, 2015. c. Prepare the necessary year-end closing entries. d. Prepare an after-closing trial balance. e. Has the studio's monthly rent remained the same throughout the year? If not, has it gone w down? Explain. Refer to the Demonstration Problem illustrated in the previous chapter on pages 163 Prepare a 10-column worksheet for Internet Consulting Service, Inc., dated December 31, 20 the bottom of your worksheet, prepare a brief explanation keyed to each adjusting entry

Answer & Explanation Solved by verified expert

See Answer