ABC Corporation was incorporated and began operations on Jan 1, 2017 with $50,00
ID: 2605180 • Letter: A
Question
ABC Corporation was incorporated and began operations on Jan 1, 2017 with $50,000 cash and $50,000 of share capital issued.
1.Prepare an income statement (single-step), statement of changes in equity, and balance sheet.
2.Prepare and post the closing entries.
3.Prepare an after-closing trial balance.
Please Show Steps
Adjusted Trial Balance 31-Jan Account Debit Credit 13200 5000 Interest Receiveable 100 Truck 9 Accumulated Dep, Equipment 100 55000 Unearned Rent Revenue 50000 10000 291.67 111,802111,802Explanation / Answer
Closing entry:
Post closing TB:
Income statement Service revenue 5000 Rent revenue 300 Interest revenue 100 Total revenue 5400 Insurance expense 100 Salaries 1560 Supplies expense 500 Dep expense 291.67 Rent expense 500 Total expenses 2951.67 net income 2448.33