Question

The balances in the ledger of Landscape Services as of December 31, 2016 before adjustments are as follows:

Cash -debit	$  14,500	Tim Welch, Capital - credit	$33,050
Supplies - debit	4,150	Tim Welch, Drawing - debit	2,900
Prepaid Insurance - debit	8,700	Service Revenue - credit	52,500
Equipment - debit	42,000	Salary Expense – debit Supplies Expense Depreciation Expense Insurance Expense	26,600 0 0 0
Accumulated		Rent Expense - debit	5,000
Depreciation – credit Salaries Payable	20,200 0	Miscellaneous Expense - debit	1,900

Adjustment data are as follows: supplies on hand, December 31, $1,000; insurance expired for December, $900; depreciation on equipment for December, $1,500; salaries accrued, December 31, $1,000.

(a)	Prepare a ten-column work sheet for Landscape Services for December 31 , 2016.

Part 2   

      On thOn the basis of the adjustment data in the work sheet, journalize the adjusting entries.

Part 3   

      On thOn the basis of the data in the work sheet, journalize the closing entries.

Answer 1

WORKSHEET
31-Dec-18
Account Names			Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
			Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash			14,500				14,500				14,500
Supplies			4,150			3150	1,000				1,000
Prepaid insurance			8,700			900	7800				7800
Equipment			42,000				42,000				42,000
Accumulated Dep				20200		1500		21700				21700
Salaries payable				0		1,000		1,000				1,000
Capital				33,050				33,050				33,050
Drawings			2900				2900				2900
Service revenue				52500				52,500		52500
Salaries expense			26600		1,000		27600		27600
Supplies expense					3150		3150		3150
Depreciation expense					1500		1,500		1500
Insurance expense					900		900		900
Rent expense			5,000				5,000		5,000
Misc. expense			1,900				1,900		1,900
Total			105,750	105750	6,550	6,550	108,250	108,250	40,050	52,500	68,200	55,750
Add: Net income									12,450			12,450
									52,500	52,500	68,200	6,820
Adjusting entries
1. Supplies expense Dr.					3150
Supplies						3150
2. Insurancce Expense Dr.					900
Prepaid insurance						900
3. Depreciation Expense Dr.					1500
Accumulated depreciation						1500
4. Salaries expense dr.					1000
salaries payable						1000
Closing entries
1. Service revenue Dr.					52500
Income Summary						52500
2. Income Summary					40050
	salaries expense					27600
	Supplies expense					3150
	Depreciation expense					1500
	Insurance expense					900
	Rent expense					5000
	Misc. expense					1900
3. Income Summary Dr.					12450
Tim Welch Capital						12450
4. Tim Welch Capital Dr.					2900
Tim welch Drawings						2900