Question

PLEASE DO ONLY THE "JOURNAL" SECTION. I ALREADY HAVE ANSWERS TO ALL THE OTHER ONES!!!

Beacon Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacon Signals Company prepared the following end-ofperiod spreadsheet at December 31, 2019, fiscal year:

	Beacon Signals Company
	End-of-Period Spreadsheet
	For the Year Ended December 31, 2019
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
Account Title	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	13,000.00				13,000.00
Accounts Receivable	40,500.00		(a) 12,500.00		53,000.00
Prepaid Insurance	4,200.00			(b) 3,000.00	1,200.00
Supplies	3,000.00			(c) 2,250.00	750.00
Land	98,000.00				98,000.00
Building	500,000.00				500,000.00
Accumulated Depreciation-Building		255,300.00		(d) 9,000.00		264,300.00
Equipment	121,900.00				121,900.00
Accumulated Depreciation-Equipment		100,100.00		(e) 4,500.00		104,600.00
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
Sarah Colin, Capital		238,100.00				238,100.00
Sarah Colin, Drawing	10,000.00				10,000.00
Fees Earned		388,700.00		(a) 12,500.00		401,200.00
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) 9,000.00		9,000.00
Repairs Expense	8,850.00				8,850.00
Depreciation Expense-Equipment			(e) 4,500.00		4,500.00
Insurance Expense			(b) 3,000.00		3,000.00
Supplies Expense			(c) 2,250.00		2,250.00
Miscellaneous Expense	4,350.00				4,350.00
	1,000,000.00	1,000,000.00	37,450.00	37,450.00	1,030,900.00	1,030,900.00

Required:

1.	Prepare an income statement for the year ended December 31. 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 statement of owner’s equity for the year ended December 31. No additional investments were made during the year. For those boxes in which you must enter subtracted or negative numbers use 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.
3.	Prepare a balance sheet as of December 31. Fixed assets must be entered in order according to account number. 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 (:) or the word "Less" on the balance sheet; they will automatically insert where necessary.
4.	Based upon the end-of-period spreadsheet, journalize the closing entries. Explanations should be omitted. If you are unsure of account titles, see the chart of accounts.
5.	Prepare a post-closing trial balance.

CHART OF ACCOUNTS
Beacon Signals 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 Sarah Colin, Capital 32 Sarah Colin, Drawing 33 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

Labels
Current assets
Current liabilities
December 31, 2019
Expenses
For the Year Ended December 31, 2019
Property, plant, and equipment
Revenues
Amount Descriptions
Decrease in owner’s equity
Increase in owner’s equity
Net income
Net loss
Sarah Colin, capital, January 1, 2019
Sarah Colin, capital, December 31, 2019
Total assets
Total current assets
Total expenses
Total liabilities
Total liabilities and owner’s equity
Total property, plant, and equipment
Total revenues
Withdrawals

1. Prepare an income statement for the year ended December 31. 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.

Score: 136/136

Beacon Signals Company

Income Statement

?

1	?
2	?	?
3	?	?
4	?		?
5	?
6	?	?
7	?	?
8	?	?
9	?	?
10	?	?
11	?	?
12	?	?
13	?	?
14	?	?
15	?		?
16	?		?

2. Prepare a statement of owner’s equity for the year ended December 31. No additional investments were made during the year. For those boxes in which you must enter subtracted or negative numbers use 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.

Score: 54/54

Beacon Signals Company

Statement of Owner’s Equity

?

1	?		?
2	?	?
3	?	?
4	?		?
5	?		?

3. Prepare a balance sheet as of December 31. Fixed assets must be entered in order according to account number. 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 (:) or the word "Less" on the balance sheet; they will automatically insert where necessary.

Score: 177/177

Beacon Signals Company

Balance Sheet

?

1	Assets
2	?
3	?		?
4	?		?
5	?		?
6	?		?
7	?			?
8	?
9	?		?
10	?	?
11	?	?	?
12	?	?
13	?	?	?
14	?			?
15	?			?
16	Liabilities
17	?
18	?		?
19	?		?
20	?		?
21	?			?
22	Owner’s equity
23	?			?
24	?			?

4. Based upon the end-of-period spreadsheet, journalize the closing entries. If you are unsure of account titles, see the chart of accounts.

Question not attempted.

PAGE 11

JOURNAL

ACCOUNTING EQUATION

Score: 0/171

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Closing Entries
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Answer 1

• All working forms part of the answer
• As mentioned by you, only journal part is provided which is Closing Journal Entries.
• While doing closing entries:

Items of Income Statement with Credit balances are debited,
Items of Income Statement with debit balances are credited,
Difference in journal entry is debited or credited as the case may be to CAPITAL a/c

Drawing balance is credited and Capital account is debited for closing Drawings account.

• Closing Journal Entries

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	31-Dec-19	Fees Earned		$      4,01,200.00				$     (4,01,200.00)
2		Rent Revenue		$            1,300.00				$           (1,300.00)
3		Sarah Colin, Capital			$       1,69,450.00			$       1,69,450.00
4		Salaries and Wages Expense			$       1,68,000.00			$       1,68,000.00
5		Advertising Expense			$          21,700.00			$           21,700.00
6		Utilities Expense			$          11,400.00			$           11,400.00
7		Depreciation Expense-Building			$             9,000.00			$             9,000.00
8		Repairs Expense			$             8,850.00			$             8,850.00
9		Depreciation Expense-Equipment			$             4,500.00			$             4,500.00
10		Insurance Expense			$             3,000.00			$             3,000.00
11		Supplies Expense			$             2,250.00			$             2,250.00
12		Miscellaneous Expense			$             4,350.00			$             4,350.00
13
14	31-Dec-19	Sarah Colin, Capital		$         10,000.00				$         (10,000.00)
15		Sarah Colin, Drawing			$          10,000.00			$           10,000.00
		TOTAL		$      4,12,500.00	$       4,12,500.00			$                          -