Question

1) The adjusted trial balance of Williams Landscaping at December 31, 2019 is as follows:

	Debit	Credit
Cash	$15,000
Accounts Receivable	30,000
Prepaid Insurance	7,500
Supplies	3,200
Land	40,000
Building	160,000
Accumulated Depreciation--Building		$12,000
Equipment	75,000
Accumulated Depreciation--Equipment		8,500
Accounts Payable		12,000
Salaries Payable		2,000
Unearned Revenue		25,000
Mortgage Payable		100,000
Williams, Capital		21,290
Williams, Withdrawals	23,000
Service Revenue		289,000
Salaries Expense	61,000
Depreciation Expense--Building and Equipment	6,150
Supplies Expense	14,040
Insurance Expense	14,000
Utilities Expense	20,900	________
Total	$469,790	$469,790

There were no new capital contributions during the year. Using the information above, prepare a post-closing trial balance for Williams Landscaping (dated December 31, 2019).

Answer 1

• All working forms part of the answer
• Calculation of Net Income

Service Revenue	$      289,000.00
Expenses:
Salaries Expense	$        61,000.00
Depreciation Expense--Building and Equipment	$           6,150.00
Supplies Expense	$        14,040.00
Insurance Expense	$        14,000.00
Utilities Expense	$        20,900.00
Total Expenses	$      116,090.00
Net Income	$      172,910.00

• Post Closing Trial Balance , Dec 31, 2019

	Debit	Credit
Cash	$            15,000.00
Accounts Receivable	$            30,000.00
Prepaid Insurance	$              7,500.00
Supplies	$              3,200.00
Land	$            40,000.00
Building	$          160,000.00
Accumulated Depreciation--Building		$                      12,000.00
Equipment	$            75,000.00
Accumulated Depreciation--Equipment		$                        8,500.00
Accounts Payable		$                      12,000.00
Salaries Payable		$                        2,000.00
Unearned Revenue		$                      25,000.00
Mortgage Payable		$                    100,000.00
Williams, Capital [21290 + 172910 Net Income – 23000 Withdrawals]		$                    171,200.00
Total	$          330,700.00	$                    330,700.00