A) Prepare Income Statement & Owners Equity Statement

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Income Statement
For the Two Months Ended December 31, 2019
Debit Credit
Revenues
Service Revenues $4,515
Expenses
Salaries and Wages Expense $1,006
Utilities Expense 125
Advertising Expense 165
Supplies Expense 1,025
Depreciation Expense 40
Insurance Expense 110
Interest Expense 15
Total Expenses 2,486
Net Income $2,029

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Owners Equity
For the Two Months Ended December 31, 2019
Debit Credit
Add: Owners Capital, November 1, 2019 $800
Net Income 2,029 2,829
2,829
Less: Owners Drawings 500
Owners Capital, December 31, 2019 2,329

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Balance Sheet
December 31, 2019
Assets
Current Assets Debit Credit
Cash 1180
Accounts Receivable 875
Supplies 350
Prepaid Insurance 1210

Property, Plant, and Equipment

Equipment 1,200
Less: Accumulated Depreciation-Equipment 40 1160

Total Assets 4,775

Liabilities and Owners Equity

Current Liabilities
Accounts Payable $75
Salary and Wages Payable 56
Unearned Service Revenue 300
Notes Payable $2,000
Interest Payable 15
Total Liabilities 2,446
Owners Equity
Owners Capital 2,329

Total Liabilities & Capital 4,775

B) Post Closing Entries

General Journal J3
Date Account Titles and Explanations Debit Credit
Closing Entries
2019
Dec. 31 Service Revenue 4,515
Income Summary 4,515
(To close revenue accounts)

31 Income Summary 2,486

Supplies Expense 1,025
Salaries and Wages Expense 1,006
Advertising Expense 165
Utility Expense 125
Insurance Expense 110
Depreciation Expense 40
Interest Expense 15
(To close expense accounts)

31 Income Summary 2,029

Owner's Capital 2,029
(To close net income to capital)

31 Owner's Capital 500

Owner's Drawing 500
(To close drawings to capital)

C) Post Closing Trial Balance

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Post-Closing Trial Balance
December 31, 2019
Debit Credit
Cash 1180
Accounts Receivable 875
Supplies 350
Prepaid Insurance 1210
Equipment
Accumulated Depreciation- 1200
Equipment 40
Accounts Payable 75
Salary and Wages Payable 56
Interest Payable 15
Unearned Service Revenue 300
Notes Payable 2000
Owners Equity 2329
Total 4815 4815