Beacon Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses.

Beacon Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses.



Beacon Signals Company prepared the following end-of-period spreadsheet at December 31, 2019, the end of the fiscal year:

Accounts Receivable Prepaid Insurance Supplies Land Building Accum. Depr.—Building Equipment Accum. Depr.—Equipment Accounts Payable Salaries and Wages Payable Unearned Rent Sarah Colin, Capital Sarah Colin, Drawing Fees Earned Rent Revenue Salaries and Wages Expense Advertising Expense Utilities Expense Depr. Exp.—Building Repairs Expense Depr. Exp.—Equipment Insurance Expense Supplies Expense Misc. Expense Beacon Signals Company End-of-Period Spreadsheet Unadjusted AdjustmentsTrial BalanceTrial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr.
Adjusted
13,000 40,500 4,200 3,000 98,000 500,000 121,900 10,000 163,100 21,700 11,400 8,850 4,350 255,300 100,100 15,700 2,100 238,100 388,700 (a)  12,500 (g)    1,300 (f)     4,900 (d)    9,000 (e)    4,500 (b)    3,000 (c)    2,250  37,450 (b) 3,000 (c) 2,250 (d) 9,000 (e) 4,500 (f) 4,900 (a)12,500 (g) 1,300  37,450 13,000 53,000 1,200 75 98,000 500,000 121,900 10,000 168,000 21,700 11,400 9,000 8,850 4,500 3,000 2,250 4,350 1,030,900  264,300 104,600 15,700 4,900 8 238,100 401,200 1,300 1,030,900

Instructions
1. Prepare an income statement for the year ended December 31.
2. Prepare a statement of owner’s equity for the year ended December 31. No additional investments were made during the year.
3. Prepare a balance sheet as of December 31.
4. Based upon the end-of-period spreadsheet, journalize the closing entries.
5. Prepare a post-closing trial balance.


Answer:




1.
Revenues:
Fees earned$401,200
Rent revenue1,300
Total revenues$402,500
Expenses:
Salaries and wages expense $168,000
Advertising expense21,700
Utilities expense11,400
Depreciation expense—building 9,000
Repairs expense8,850
Depreciation expense—equipment 4,500
Insurance expense3,000
Supplies expense2,250
Miscellaneous expense4,350
Total expenses233,050
Net income$169,450
2.
Sarah Colin, capital, January 1, 2019$238,100
Net income for the year$169,450
Withdrawals(10,000)
Increase in owner’s equity159,450
Sarah Colin, capital, December 31, 2019$397,550
3.
Current assets:
Cash$ 13,000
Accounts receivable53,000
Prepaid insurance1,200
Supplies750
Total current assets$ 67,950
Property, plant, and equipment:
Land$ 98,000
Building$500,000
Less accumulated depreciation 264,300 235,700
Equipment$121,900
Less accumulated decpreciation 104,600 17,300
Total property, plant, and equipment351,000
Total assets$418,950
Current liabilities:
Accounts payable$ 15,700
Salaries and wages payable4,900
Unearned rent800
Total liabilities$ 21,400
Sarah Colin, capital397,550
Total liabilities and owner’s equity$418,950
4.  2019
 Dec. 31 Fees Earned401,200
Rent Revenue1,300
Salaries and Wages Expense168,000
Advertising Expense21,700
Utilities Expense11,400
Depreciation Expense—Building 9,000
Repairs Expense8,850
Depreciation Expense—Equipment 4,500
Insurance Expense3,000
Supplies Expense2,250
Miscellaneous Expense4,350
Sarah Colin, Capital169,450
31 Sarah Colin, Capital10,000
Sarah Colin, Drawing10,000
5.
Debit Credit
Balances Balances
Cash13,000
Accounts Receivable53,000
Prepaid Insurance1,200
Supplies750
Land98,000
Building500,000
Accumulated Depreciation—Building264,300
Equipment121,900
Accumulated Depreciation—Equipment104,600
Accounts Payable15,700
Salaries and Wages Payable4,900
Unearned Rent800
Sarah Colin, Capital397,550
787,850 787,850