Sunday 7 October 2012

Problem 4-3B
The completed financial statement columns of the worksheet for Molinda Company are shown below and on the next page.

MOLINDA COMPANY
Worksheet For the Year Ended December 31, 2008
Account Income Statement Balance Sheet No. Account Titles Dr. Cr. Dr. Cr.
101 Cash 22,400
112 Accounts Receivable 13,500
130 Prepaid Insurance 3,500
157 Equipment 26,000
167 Accumulated Depreciation 5,600
201 Accounts Payable 11,300
212 Salaries Payable 3,000
311 Common Stock 20,000
320 Retained Earnings 16,000
332 Dividends 14,000
400 Service Revenue 69,000
622 Repair Expense 2,000

Account Income Statement Balance Sheet No. Account Titles Dr. Cr. Dr. Cr.
711 Depreciation Expense 2,600
722 Insurance Expense 2,200
726 Salaries Expense 37,000
732 Utilities Expense 1,700
Totals 45,500 69,000 79,400 55,900
Net Income 23,500 23,500 69,000 69,000 79,400 79,400

Instructions
(a) Prepare an income statement, a retained earnings statement, and a classified balance sheet.
(b) Prepare the closing entries. No additional issuance of common stock occurred during the year.
(c) Post the closing entries and rule and balance the accounts. Use T accounts. Income Summary is account No. 350.
(d) Prepare a post-closing trial balance..



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