Jarmuz Management Services began business on January 1, 2014, with a capital investment of $120,000. The company manages condominiums for owners (Service Revenue) and rents space in its own office building (Rent Revenue). The trial balance and adjusted trial balance columns of the worksheet at the end of the first year are as follows.
JARMUZ MANAGEMENT SERVICES Worksheet For the Year Ended December 31, 2014
Account Titles
Trial Balance
Adjusted
Trial Balance
Cash
13,800
13,800
Accounts Receivable
28,300
28,300
Prepaid Insurance
3,600
2,400
Land
67,000
67,000
Buildings
127,000
127,000
Equipment
59,000
59,000
Accounts Payable
12,500
12,500
Unearned Rent Revenue
6,000
1,500
Mortgage Payable
120,000
120,000
Owner”s Capital
144,000
144,000
Owner”s Drawings
22,000
22,000
Service Revenue
90,700
90,700
Rent Revenue
29,000
33,500
Salaries and Wages Expense
42,000
42,000
Advertising Expense
20,500
20,500
Utilities Expense
19,000
19,000
Totals
402,200
402,200
Trial Balance
Adjusted
Trial Balance
Account TitlesDr. Cr.
Insurance Expense Depreciation Expense
1,200
6,600
Accumulated Depreciation—Buildings
3.000
Accumulated Depreciation—Equipment
3.600
Interest Expense
10,000
Interest Payable
10,000
Totals
418,800
418,800
Instructions
(a) Prepare a complete worksheet.
(b) Prepare a classified balance sheet. (Note: $30,000 of the mortgage note payable is due for payment next year.)
(c) Journalize the adjusting entries.
(d) Journalize the closing entries.
(e) Prepare a post-closing trial balance.
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