Question

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

1. Lamp Light Company

Income Statement

For the year ended December 31,2018

Accounts Title	Amount	Amount
Revenue:-
Fees Earned	375,000
Rent Revenue	1,300
Total Revenue		376,300
Less:- Expenses:-
Salaries and Wages Expenses	168,000
Advertising Expenses	21,700
Utilities Expenses	11,400
Depreciation Expenses - Building	10,100
Repairs Expenses	8,850
Depreciation Expenses - Equipment	6,680
Insurance Expenses	3,000
Supplies Expenses	2,250
Miscellaneous Expenses	4,320
Total Expenses		(236,300)
Net Income		140,000

2. Lamp Light Company

Statement for Retained Earnings

for the year ended December 31,2018

Accounts Title	Amount
Retained Earnings	128,100
Less:- Dividend	(10,000)
Add:- Net Income	140,000
Retained Earnings, Ending	258,100

3. Lamp Light Company

Balance Sheet

As on December 31,2018

Accounts Title	Amount	Amount	Amount
Assets:-
Current Assets:-
Cash		10,800
Accounts Receivable		50,200
Prepaid Insurance		1,200
Supplies		480
Total Current Assets			62,680
Fixed Assets:-
Land		98,000
Building	400,000
Less:- Accumulated Depreciation - Building	(215,400)	184,600
Equipment	101,000
Less:- Accumulated Depreciation - Equipment	(91,780)	9,220
Total Fixed Assets			291,820
Total Assets			354,500
Liabilities and Stockholders Equity:-
Liabilities:-
Accounts Payable		15,700
Salaries and Wages Payable		4,900
Unearned Rent		800
Total Liabilities			21,400
Stockholders Equity:-
Common Stock		75,000
Retained Earnings, Ending		258,100
Total Stockholders Equity			333,100
Total Liabilities and Stockholders Equity			354,500

4.Posting Closing Entries:-

Lamp Light Company

General Journal

for the year ended December 31,2018

Date	Accounts Title	Debit	Credit
December 31	Fees Earned	375,000
	Rent Revenue	1,300
	Income Summary		376,300
	(To close Revenue to Income Summary)
December 31	Income Summary	236,300
	Salaries and Wages Expenses		168,000
	Advertising Expenses		21,700
	Utilities Expenses		11,400
	Depreciation Expenses - Building		10,100
	Repairs Expenses		8,850
	Depreciation Expenses - Equipment		6,680
	Insurance Expenses		3,000
	Supplies Expenses		2,250
	Miscellaneous Expenses		4,320
	(To close Expenses to Income Summary)
December 31	Income Summary	140,000
	Retained Earnings		140,000
	(To close Income Summary to Retained Earnings)

5. Lamp Light Company

Post - Closing Trial Balance

for the year ended December 31,2018

Accounts Title	Debit	Credit
Cash	10,800
Accounts Receivable	50,200
Prepaid Insurance	1,200
Supplies	480
Land	98,000
Building	400,000
Accumulated Depreciation - Building		215,400
Equipment	101,000
Accumulated Depreciation - Equipment		91,780
Accounts Payable		15,700
Salaries and Wages Payable		4,900
Unearned Rent		800
Common Stock		75,000
Retained Earnings, Ending		258,100
Total	661,680	661,680