Problem 3-8A Preparing closing entries, financial statements, and ratios C4 A2 A3 P3 P4
| The adjusted trial balance for Tybalt Construction as of December 31, 2013, follows. |
TYBALT CONSTRUCTION
Adjusted Trial Balance
December 31, 2013 |
| No. |
Account Title |
Debit |
Credit |
| 101 |
Cash |
|
$ |
5,000 |
|
|
|
|
|
| 104 |
Short-term investments |
|
|
23,000 |
|
|
|
|
|
| 126 |
Supplies |
|
|
8,100 |
|
|
|
|
|
| 128 |
Prepaid insurance |
|
|
7,000 |
|
|
|
|
|
| 167 |
Equipment |
|
|
40,000 |
|
|
|
|
|
| 168 |
Accumulated depreciation—Equipment |
|
|
|
|
|
$ |
20,000 |
|
| 173 |
Building |
|
|
150,000 |
|
|
|
|
|
| 174 |
Accumulated depreciation—Building |
|
|
|
|
|
|
50,000 |
|
| 183 |
Land |
|
|
55,000 |
|
|
|
|
|
| 201 |
Accounts payable |
|
|
|
|
|
|
16,500 |
|
| 203 |
Interest payable |
|
|
|
|
|
|
2,500 |
|
| 208 |
Rent payable |
|
|
|
|
|
|
3,500 |
|
| 210 |
Wages payable |
|
|
|
|
|
|
2,500 |
|
| 213 |
Property taxes payable |
|
|
|
|
|
|
900 |
|
| 233 |
Unearned professional fees |
|
|
|
|
|
|
7,500 |
|
| 251 |
Long-term notes payable |
|
|
|
|
|
|
67,000 |
|
| 307 |
Common stock |
|
|
|
|
|
|
5,000 |
|
| 318 |
Retained earnings |
|
|
|
|
|
|
121,400 |
|
| 319 |
Dividends |
|
|
13,000 |
|
|
|
|
|
| 401 |
Professional fees earned |
|
|
|
|
|
|
97,000 |
|
| 406 |
Rent earned |
|
|
|
|
|
|
14,000 |
|
| 407 |
Dividends earned |
|
|
|
|
|
|
2,000 |
|
| 409 |
Interest earned |
|
|
|
|
|
|
2,100 |
|
| 606 |
Depreciation expense—Building |
|
|
11,000 |
|
|
|
|
|
| 612 |
Depreciation expense—Equipment |
|
|
6,000 |
|
|
|
|
|
| 623 |
Wages expense |
|
|
32,000 |
|
|
|
|
|
| 633 |
Interest expense |
|
|
5,100 |
|
|
|
|
|
| 637 |
Insurance expense |
|
|
10,000 |
|
|
|
|
|
| 640 |
Rent expense |
|
|
13,400 |
|
|
|
|
|
| 652 |
Supplies expense |
|
|
7,400 |
|
|
|
|
|
| 682 |
Postage expense |
|
|
4,200 |
|
|
|
|
|
| 683 |
Property taxes expense |
|
|
5,000 |
|
|
|
|
|
| 684 |
Repairs expense |
|
|
8,900 |
|
|
|
|
|
| 688 |
Telephone expense |
|
|
3,200 |
|
|
|
|
|
| 690 |
Utilities expense |
|
|
4,600 |
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
$ |
411,900 |
|
|
$ |
411,900 |
|
|
|
|
|
|
|
| O. Tybalt invested $5,000 cash in the business in exchange for more common stock during year 2013 (the December 31, 2012, credit balance of retained earnings was $121,400). Tybalt Construction is required to make a $7,000 payment on its long-term notes payable during 2014. |
| Required: |
| 1.1 |
Prepare the income statement for the calendar year 2013 |
|