Question

In 2019, Michael Knight organized Knight Realty. At December 31, 2019, the end of the current fiscal year, the trial balance of Knight Realty is as follows:

Knight Realty
Unadjusted Trial Balance
December 31, 2019
Account Title									Debit	Credit
	Cash								$      3,425
	Accounts Receivable								7,000
	Supplies								1,270
	Prepaid Insurance								620
	Office Equipment								51,650
	Accumulated Depreciation-Office Equipment									$      9,700
	Accounts Payable									925
	Unearned Fees									1,250
	Michael Knight, Capital									29,000
	Michael Knight, Drawing								5,200
	Fees Earned									59,125
	Wages Expense								22,415
	Rent Expense								4,200
	Utilities Expense								2,715
	Miscellaneous Expense								1,505
									$  100,000	$  100,000

Data needed to determine year-end adjustments are as follows:

a.	Supplies on hand at December 31, 2019, are $380.
b.	Insurance premiums expired during the year are $315.
c.	Depreciation of equipment during the year is $4,950.
d.	Wages accrued but not yet paid at December 31, 2019, are $440.
e.	Accrued fees earned but not yet recorded at December 31, 2019, are $1,000.
f.	Unearned fees on December 31, 2019, are $750.

Required:
1.	Enter the trial balance on a ten-column worksheet and complete the worksheet.
2.	Journalize the adjusting entries.
3.	Prepare an income statement, statement of owner's equity, and statement of financial
	position (balance sheet)
4.	Journalize the closing entries.
5.	Prepare the post-closing trial balance.

Answer 1