Ex.

1 The Trial Balance Columns of Work Sheet Salma company at the December 31, 2016 (the End of the
Year).
Trial Balance
Account Titles
Dr Cr
Cash 400 100

Prepaid Insurance 3 100

Supplies 20 000

Land 59 000

Building 155 000

Notes Payable 100 000

Unearned Rent Revenue 5 000

Salma, Capital 515 400

Salma, Drawing 20 000

Service Revenue 75 600

Rent Revenue 24 000

Salaries Expense 30 000

Advertising Expense 17 000

Utilities Expense 15 800

Totals 720 000 720 000

Other data:
1. Supplies Expense 15000$.
1. 1,700 $ for the Insurance that has expired.
2. The Expected salvage of Building is $ 13,000 after 20 years.
3. Earned 3,000$ from Unearned Rent Revenue.
4. The company signed Notes Payable on 1/4/2016 at an annual rate of 12%.

Instruction: Prepare:
1. Prepare Adjusting entries at the end of year.
2. Prepare Full work sheet.
3. Prepare three main statements.
4. Closing entries.
5. Trial Balance post-closing.
 Solution
1) Adjusting entries at the end of the year:

# Adjusting Entries Debit Credit

Total
2) Work Sheet for the Year Ended December 31, 2016.
3) Three main statements.
Salma COMPANY
Income Statement
For the Year Ended December 31, 2016

Salma COMPANY
Owner's Equity Statement
For the Year Ended December 31, 2016
 Salma COMPANY
Balance Sheet
For the Year Ended December 31, 2016
4) Closing entries December 31, 2016.
General Journal
Account titles and Explanation Debit Credit
Closing Entries.
5) Trial Balance post-closing.

Trial Balance Post-closing

Account Titles
Debit Credit

Total