80.2K

Verified Solution

Link Copied!

Income Statement Balance Sheet Journal Entries OUTSIDE, INC. Balance Sheet December 31 Assets $ $ Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Less: Accum. Depreciation (enter as a negative) 5,400 19,000 4,200 930 Liabilities Accounts Payable Unearned Subscription Revenue Salaries Payable Total Liabilities 17,000 10,000 3,500 30,500 70,000 (13,000) 57,000 Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity 86,530 Total Liabilities and Stockholders' Equity $ 21,000 35,580 x 0 x 4,567 x Total Assets $ Income Statement Balance Sheet Journal Entries Debit 0 x $ 0X Credit 0 0 0 0X 0X b. General Journal Date Description Dec 31 Subscription Revenue $ Advertising Revenue Retained Earnings To close the revenue accounts. 31 Retained Earnings Salaries Expense Printing and Mailing Expense Rent Expense Supplies Expense Insurance Expense Depreciation Expense Income Tax Expense To close the expense accounts. 0 0 0X 0X 0X 0 0 0 0 x 0 0 x 0 0X 0 x 0 Financial Statements and Closing Entries Outside, Inc. publishes magazines for skiers and hikers. The firm has the following adjusted trial balance at December 31. OUTSIDE, INC. Adjusted Trial Balance December 31 Debit Credit Cash $5,400 Accounts Receivable 19,000 Supplies 4,200 Prepaid Insurance 930 Office Equipment 70,000 Accumulated Depreciation $13,000 Accounts Payable 17,000 Unearned Subscription Revenue 10,000 Salaries Payable 3,500 Common Stock 21,000 Retained Earnings 17,620 Subscription Revenue 188,300 Advertising Revenue 55,400 Salaries Expense 120,230 Printing and Mailing Expense 85,600 Rent Expense 5,400 Supplies Expense 6,100 Insurance Expense 1,860 Depreciation Expense 5,500 Income Tax Expense 1,600 Totals $325,820 $325,820

Answer & Explanation Solved by verified expert

See Answer