Question

Labels: Current assets Current liabilities December 31, 2018 Expenses For the Year Ended December 31, 2018 Property, plant, and equipment Revenues Amount Descriptions: Book value-building Book value-equipment Change in retained earnings Net income Net loss Retained earnings, December 31, 2018 Retained earnings, January 1, 2018 Total assets Total current assets Total expenses Total liabilities Total liabilities and stockholders’ equity Total property, plant, and equipment Total revenues Total stockholders’ equity CHART OF ACCOUNTS
Lamp Light Company
General Ledger
ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Supplies 15 Land 16 Building 17 Accumulated Depreciation-Building 18 Equipment 19 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Salaries and Wages Payable 23 Unearned Rent EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends 34 Income Summary	REVENUE 41 Fees Earned 42 Rent Revenue EXPENSES 51 Salaries and Wages Expense 52 Advertising Expense 53 Utilities Expense 54 Depreciation Expense-Building 55 Repairs Expense 56 Depreciation Expense-Equipment 57 Insurance Expense 58 Supplies Expense 59 Miscellaneous Expense

Lamp Light Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Lamp Light Company prepared the following end-of-period spreadsheet at December 31, 2018, the end of the fiscal year:

	Lamp Light Company
	End-of-Period Spreadsheet
	For the Year Ended December 31, 2018
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
Account Title	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	10,800.00				10,800.00
Accounts Receivable	38,900.00		(a) 11,300.00		50,200.00
Prepaid Insurance	4,200.00			(b) 3,000.00	1,200.00
Supplies	2,730.00			(c) 2,250.00	480.00
Land	98,000.00				98,000.00
Building	400,000.00				400,000.00
Accumulated Depreciation-Building		205,300.00		(d) 10,100.00		215,400.00
Equipment	101,000.00				101,000.00
Accumulated Depreciation-Equipment		85,100.00		(e) 6,680.00		91,780.00
Accounts Payable		15,700.00				15,700.00
Salaries and Wages Payable				(f) 4,900.00		4,900.00
Unearned Rent		2,100.00	(g) 1,300.00			800.00
Common Stock		75,000.00				75,000.00
Retained Earnings		128,100.00				128,100.00
Dividends	10,000.00				10,000.00
Fees Earned		363,700.00		(a) 11,300.00		375,000.00
Rent Revenue				(g) 1,300.00		1,300.00
Salaries and Wages Expense	163,100.00		(f) 4,900.00		168,000.00
Advertising Expense	21,700.00				21,700.00
Utilities Expense	11,400.00				11,400.00
Depreciation Expense-Building			(d) 10,100.00		10,100.00
Repairs Expense	8,850.00				8,850.00
Depreciation Expense-Equipment			(e) 6,680.00		6,680.00
Insurance Expense			(b) 3,000.00		3,000.00
Supplies Expense			(c) 2,250.00		2,250.00
Miscellaneous Expense	4,320.00				4,320.00
	875,000.00	875,000.00	39,530.00	39,530.00	907,980.00	907,980.00

Required:

1.	Prepare an income statement for the year ended December 31, 2018. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement.
2.	Prepare a retained earnings statement for the year ended December 31, 2018. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Refer to the Chart of Accounts for exact wording of account titles.
3.	Prepare a balance sheet as of December 31, 2018. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Refer to the Chart of Accounts for exact wording of account titles. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
4.	Based upon the end-of-period spreadsheet, journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.
5.	Prepare a post-closing trial balance.

Answer 1

• All working forms part of the answer
• Requirement 1

Income Statement
For the Year Ended Dec 31, 2018
Revenues:
Fees Earned	$        375,000.00
Rent Revenue	$             1,300.00
Total Revenues		$      376,300.00
Expenses:
Salaries and Wages Expense	$        168,000.00
Advertising Expense	$           21,700.00
Utilities Expense	$           11,400.00
Depreciation Expense-Building	$           10,100.00
Repairs Expense	$             8,850.00
Depreciation Expense-Equipment	$             6,680.00
Insurance Expense	$             3,000.00
Supplies Expense	$             2,250.00
Miscellaneous Expense	$             4,320.00
Total Expenses		$      236,300.00
Net Income		$      140,000.00

• Requirement 2

Statement of Retained earnings
For the Year Ended Dec 31, 2018
Retained Earnings, Jan 1-2018		$      128,100.00
Net Income	$        140,000.00
Dividends	$        (10,000.00)
Change In retained Earnings		$      130,000.00
Retained Earnings, Dec 31-2018		$      258,100.00

• Requirement 3

Balance Sheet
Dec 31, 2018
ASSETS
Current Assets:
Cash		$     10,800.00
Accounts Receivable		$     50,200.00
Prepaid Insurance		$       1,200.00
Supplies		$           480.00
Total Current Assets			$    62,680.00
Property, Plant & Equipment:
Land		$     98,000.00
Building	$           400,000.00
Accumulated Depreciation-Building	$         (215,400.00)	$   184,600.00
Equipment	$           101,000.00
Accumulated Depreciation-Equipment	$           (91,780.00)	$       9,220.00
Total Property Plant & Equipment			$ 291,820.00
Total ASSETS			$ 354,500.00
LIABILITIES
Current Liabilities:
Accounts Payable		$     15,700.00
Salaries and Wages Payable		$       4,900.00
Unearned Rent		$           800.00
Total Liabilities			$    21,400.00
STOCKHOLDER's EQUITY
Common Stock		$     75,000.00
Retained Earnings		$   258,100.00
Total Stockholder's Equity			$ 333,100.00
Total LIABILITIES & STOCKHOLDERS' EQUITY			$ 354,500.00

• Requirement 4

Closing Entry no.	Accounts title	Debit	Credit
1	Fees Earned	$      375,000.00
	Rent Revenue	$          1,300.00
	Income Summary		$            376,300.00
	(revenue accounts closed)
2	Income Summary	$      236,300.00
	Salaries and Wages Expense		$            168,000.00
	Advertising Expense		$              21,700.00
	Utilities Expense		$              11,400.00
	Depreciation Expense-Building		$              10,100.00
	Repairs Expense		$                 8,850.00
	Depreciation Expense-Equipment		$                 6,680.00
	Insurance Expense		$                 3,000.00
	Supplies Expense		$                 2,250.00
	Miscellaneous Expense		$                 4,320.00
	(Expenses accounts closed)
3	Income Summary	$      140,000.00
	Retained earnings		$            140,000.00
	(Net Income balance closed)
4	Retained earnings	$        10,000.00
	Dividends		$              10,000.00
	(Dividends account closed)

• Requirement 5

Post Closing Trial Balance
Account Title	Dr.	Cr.
Cash	$                                   10,800.00
Accounts Receivable	$                                   50,200.00
Prepaid Insurance	$                                     1,200.00
Supplies	$                                         480.00
Land	$                                   98,000.00
Building	$                                 400,000.00
Accumulated Depreciation-Building		$                215,400.00
Equipment	$                                 101,000.00
Accumulated Depreciation-Equipment		$                  91,780.00
Accounts Payable		$                  15,700.00
Salaries and Wages Payable		$                     4,900.00
Unearned Rent		$                        800.00
Common Stock		$                  75,000.00
Retained Earnings		$                258,100.00
TOTALs	$                                 661,680.00	$                661,680.00