Financial Accounting BMBA 140 Assignment #4

Name (first and last name): ________________________

PART I — Financial Statements (42 points)

Billy Bob Mechanical has come back in to discuss the company’s financial statements. Your
manager has requested that you assist in preparing the draft financial statements. The company
has a year ending December 31, 2020 and we have the previously provided Adjusted Trial
Balance.

Instructions: Please prepare draft financial statements based on the following adjusted Trial
Balance. Please include an Income Statement, Statement of Owner’s Equity and a Balance
Sheet.
Please note that there are a few adjustments between the adjusted TB and previous week’s,
there is no need to investigate these differences, please prepare financial statements based on
the following:

Adjusted Trial Balance:

Account Account Name Debit Balance Credit Balance

Number
1000 Cash 28,904
1010 Accounts Receivable 7,899
1015 Interest Receivable 200
1020 Supplies 2,500
1030 Prepaid Insurance 9,000
1040 Truck 25,000
1045 Accumulated Amortization – 14,000
Truck
1050 Equipment 15,000
1055 Accumulated Amortization – 2,500
Equipment
2000 Accounts Payable 18,287
2010 Salaries Payable 1,235
2020 Line of Credit 6,750
2025 Interest Payable 101
2030 Unearned Revenue 4,300
3000 Billy Bob, Capital 28,000
4000 Services Revenue 110,289
4010 Interest Revenue 2,424
5000 Salary and Wages Expense 38,394
5010 Supplies Expense 29,154
5020 Insurance Expense 3,000
5030 Amortization Expense 4,500
5040 Advertising Expense 2,275
5050 Rent Expense 15,500
5060 Repairs Expense 3,700
5070 Interest Expense 2,860
Total Balance $187,886 $187,866

1
Templates:

Income Statement:

(Company)
(Statement)
(Date)
Revenues

Total Revenue
Expenses

Profit/Loss

Statement of Owner’s Equity:

(Company)
(Statement)
(Date)
(capital)

2
Balance Sheet:

(Company)
(Statement)
(Date)
Assets
Current Assets

Total Current Assets

Property, plant and equipment

Total Assets
Liabilities and Owner’s Equity
Current Liabilities

Total Current Liabilities

3
PART I — Closing Entries (6 points)

Instructions: Please prepare all the required closing journal entries using the existing accounts
in the Adjusted Trial Balance Provided above:

Journal Entry Template:

Entry Date Account Debit or

Number Account Name Credit Amount
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