Question

I need answer of Question 6?

Below is the unadjusted trial balance for Walton Anvils as of December 31, 2016, and the data for the adjustments.

Walton Anvils
Unadjusted Trial Balance
December 31, 2016
	Balance
Account Title	Debt	Credit
Cash	$    16,900.00
Accounts Receivable	17,500
Prepaid Rent	2,500
Office Supplies	1,900
Equipment	23,000
Accumulated Depreciation - Equipment		$       7,000.00
Accounts Payable		6,200.00
Salaries Payable
Unearned Revenue		5,600.00
Common Stock		28,000.00
Retained Earnings		1,600.00
Dividends	4,500
Service Revenue		20,800.00
Salaries Expense	2,900
Rent Expense
Depreciation Expense - Equipment
Supplies Expense
Total	$    69,200.00	$    69,200.00

Adjustment Data

a. Unearned revenue still unearned at December 31, 2016	$1,800
b. Prepaid rent still in force at December 31, 2016	$2,300
c. Office supplies used	$1,400
d. Depreciation	$380
e. Accrued Salaries Expense at December 31, 2016	$210
Open T-accounts using the balances in the unadjusted trial balance. Complete the worksheet for the year ended December 31, 2016. Prepare the adjusting entries and post to the T-accounts. Prepare the adjusted trial balance. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form. Prepare the closing entries and post to the T-accounts. Prepare a post-closing trial balance. Calculate the current ratio for the company.

Question no. 6

Date		Accounts and explanation	Debit	Credit

Answer 1

	Closing Entries
		Debit	Credit
1	Service Revenue	24600.00
	To Income Summary		24600.00
	(closing of Revenue accounts)
2	Income Summary	5090.00
	To Salaries Expense		3110.00
	To Rent Expense		200.00
	To Depreciation Expense - Equipment		380.00
	To Supplies Expense		1400.00
	(closing of Expense accounts)
3	Income Summary	19510.00
	To Retained Earnings		19510.00
	(closing of Income summary account $24600-5090))
4	Retained earnings	4500.00
	To Dividend		4500.00
	(closing of Dividend account)

Income Summary Account
To Salaries Expense	3110.00	By Service Revenue	24600.00
To Rent Expense	200.00
To Depreciation Expense - Equipment	380.00
To Supplies Expense	1400.00
To Retained Earnings	19510.00
	24600.00		24600.00
Salaries Expense
To balance b/d	3110.00
		By Income Summary	3110.00
	3110.00		3110.00
Rent Expense
To balance b/d	200.00
		By Income Summary	200.00
	200.00		200.00
Depreciation Expense - Equipment
To balance b/d	380.00
		By Income Summary	380.00
	380.00		380.00
Supplies Expense
To balance b/d	1400.00
		By Income Summary	1400.00
	1400.00		1400.00
Service Revenue
		By balance b/d	24600.00
To Income Summary	24600.00		0.00
	24600.00		24600.00
Dividends
To balance b/d	4500.00
		By Retained earnings	4500.00
	4500.00		4500.00

Notes:

Walton Anvils
Adjusted Trial Balance
December 31, 2016
	Balance
Account Title	Debt	Credit
Cash	16900.00
Accounts Receivable	17500.00
Prepaid Rent	2300.00
Office Supplies	500.00
Equipment	23000.00
Accumulated Depreciation - Equipment		7380.00
Accounts Payable		6200.00
Salaries Payable		210.00
Unearned Revenue		1800.00
Common Stock		28000.00
Retained Earnings		1600.00
Dividends	4500.00
Service Revenue		24600.00
Salaries Expense	3110.00
Rent Expense	200.00
Depreciation Expense - Equipment	380.00
Supplies Expense	1400.00
Total	69790.00	69790.00

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