CLEAR WATERS COMPANY

WORK SHEET
FOR THE YEAR ENDED DECEMBER 31, 2018

Unadjusted Trial Adjusted Trial

Adjustments
Account Titles Balance Balance
Debit Credit Debit Credit Debit Credit
Cash 125,400 125,400
Accounts Receivable 104,000 104,000
Allowance for Bad Debts 5,200 5,200
Office Supplies Unused 8,000 6,000 2,000
Prepaid Rent 24,000 16,000 8,000
Office Equipment 40,000 40,000
Accum. Depreciation-Office Equipment 12,000 4,000 16,000
Furniture & Fixtures 60,000 60,000
Accum. Depreciation-Fur & Fixtures 21,600 7,200 28,800
Accounts Payable 58,400 58,400
Accrued Wages 2,400 2,400
Sunshine, Capital 200,000 200,000
Sunshine, Drawing 85,000 85,000
Income Summary
Service Revenue 400,000 400,000
Salaries and Wages Expense 197,600 2,400 200,000
Utilities Expense 40,000 40,000
Miscellaneous Expense 8,000 8,000
Office Supplies Expense 6,000 6,000
Rent Expense 16,000 16,000
Depreciation Expense - OE 4,000 4,000
Depreciation Expense - FF 7,200 7,200
Bad Debts Expense 5,200 5,200
692,000 692,000 40,800 40,800 710,800 710,800
Profit
 CLEAR WATERS COMPANY
Income Statement
1, 2018 For the Period ending December 31, 2018

Statement of
Income Statement Service Revenue 400,000
Financial Position
Debit Credit Debit Credit Operating Expenses:
125,400 Salaries and Wages Expense 200,000
104,000 Utilities Expense 40,000
5,200 Miscellaneous Expense 8,000
2,000 Office Supplies Expense 6,000
8,000 Rent Expense 16,000
40,000 Depreciation Expense - OE 4,000
16,000 Depreciation Expense - FF 7,200
60,000 Bad Debts Expense 5,200 286,400
28,800 Profit 113,600
58,400
2,400 CLEAR WATERS COMPANY
200,000 Statement of Changes in Equity
85,000 For the Period ending December 31, 2018

400,000 Sunshine, Capital Beg 200,000

200,000 Add: Profit 113,600
40,000 Less: Drawing (85,000)
8,000 Sunshine, Capital End 228,600
6,000
16,000
4,000
7,200
5,200
286,400 400,000 424,400 310,800
113,600 113,600
400,000 400,000 424,400 424,400
 CLEAR WATERS COMPANY CLEAR WATERS COMPANY
Statement of Financial Position Post-Closing Trial Balance
December 31, 2018 December 31, 2018

ASSETS
Current Assets Cash
Cash 125,400 Accounts Receivable
Accounts Receivable 104,000 Allowance for Bad Debts
Allowance for Bad Debts (5,200) Office Supplies Unused
Office Supplies Unused 2,000 Prepaid Rent
Prepaid Rent 8,000 Office Equipment
Total Current Assets 234,200 Accum. Depreciation-Office Equipment
Furniture & Fixtures
Non Current Assets Accum. Depreciation-Fur & Fixtures
Office Equipment 40,000 Accounts Payable
Accum. Depreciation-Office Equipment (16,000) Accrued Wages
Furniture & Fixtures 60,000 Sunshine, Capital
Accum. Depreciation-Fur & Fixtures (28,800) TOTAL
Total Non Current Assets 55,200
TOTAL ASSETS 289,400

LIABILITIES

Current Liabilities
Accounts Payable 58,400
Accrued Wages 2,400
TOTAL LIABILITIES 60,800

OWNER's EQUITY
Sunshine, Capital 228,600

TOTAL LIABILTIES & OWNER'S EQUITY 289,400

 TERS COMPANY
ng Trial Balance
mber 31, 2018

Debit Credit
125,400
104,000
5,200
2,000
8,000
40,000
Equipment 16,000
60,000
28,800
58,400
2,400
228,600
339,400 339,400
Adjusting Entries Debit Credit Closing Entries Debit Credit
Dec 31 Office Supplies Expense 6,000 Dec 31 Service Revenue 400,000
Office Supplies Unused 6,000 Income Summary 400,000
8,000 - 2,000 = 6,000 To close revenue account

31 Rent Expense 16,000 31 Income Summary 286,400

Prepaid Rent 16,000 Salaries and Wages Expense 200,000
24,000 * 4 mos/6mos Utilities Expense 40,000
Miscellaneous Expense 8,000
31 Depreciation Expense - OE 4,000 Office Supplies Expense 6,000
Depreciation Expense - FF 7,200 Rent Expense 16,000
Accumulated Depreciation - OE 4,000 Depreciation Expense - OE 4,000
Accumulated Depreciation - FF 7,200 Depreciation Expense - FF 7,200
40,000 x 10% = 4,000 Bad Debts Expense 5,200
60,000 x 12% = 7,200 To close expenses

31 Salaries and Wages Expense 2,400 31 Income Summary 113,600

Accrued Wages 2,400 Sunshine, Capital 113,600
To close income Summary Account
31 Bad Debts Expense 5,200 400,000-286,000=
Allowance for Bad Debts 5,200
104,000 x .05 = 5,200 31 Sunshine, Capital 85,000
Sunshine, Drawing 85,000
To close drawing account

note: Estimated BD is based on sales, no need to deduct existing balance

If the basis is Accounts Receivable, estimated less existing balance