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Carlos Company

The document provides the financial statements for Carlos Company for the year ended December 31, 2012. It includes an income statement showing a net loss of $1,600, an owner's equity statement showing owner's capital of $25,200, and a classified balance sheet with total assets of $48,500 equal to total liabilities and owner's equity. The document also provides instructions to prepare closing entries, post the entries to T-accounts, and produce a post-closing trial balance.

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mohitgaba19
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350 views5 pages

Carlos Company

The document provides the financial statements for Carlos Company for the year ended December 31, 2012. It includes an income statement showing a net loss of $1,600, an owner's equity statement showing owner's capital of $25,200, and a classified balance sheet with total assets of $48,500 equal to total liabilities and owner's equity. The document also provides instructions to prepare closing entries, post the entries to T-accounts, and produce a post-closing trial balance.

Uploaded by

mohitgaba19
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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The completed financial statement columns of the worksheet for Carlos Company are shown on the next page.

CARLOS COMPANY
Worksheet
For the Year Ended December 31, 2012
Income Statement Balance Sheet
Account Dr. Cr. Dr. Cr.
No. Account Titles 6,200
101 Cash 7,500
112 Accounts Receivable 1,800
130 Prepaid Insurance 33,000
157 Equipment 8,600
167 Accumulated Depreciation—Equip. 11,700
201 Accounts Payable 3,000
212 Salaries and Wages Payable 34,000
301 Owner’s Capital 7,200
306 Owner’s Drawings 46,000
400 Service Revenue 4,400
622 Maintenance and Repairs Expense 2,800
711 Depreciation Expense 1,200
722 Insurance Expense 35,200
726 Salaries and Wages Expense 4,000
732 Utilities Expense 47,600 46,000 55,700 57,300
Totals 1,600 1,600
Net Loss 47,600 47,600 57,300 57,300
Instructions
(a) Prepare an income statement, owner’s equity statement, and a classified balance sheet. B. Carlos made an additional i
(b) Prepare the closing entries.
(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.

S.No
1

4
he next page.

Answer A
Income Statement
Service Revenue $ 46,000
Maintenance and Repairs Expense $ 4,400
Depreciation Expense $ 2,800
Insurance Expense $ 1,200
Salaries and Wages Expense $ 35,200
Utilities Expense $ 4,000 $ 47,600
Net Loss $ (1,600)

Owner's Equity Statement


Owner’s Capital $ 34,000
less: drawings $ 7,200
add: net loss $ (1,600) $ 25,200

os made an additional investment in the business of $4,000 during 2012.

s account No. 350.


Answer B
Closing Entries
Description Debit Credit
Service Revenue $ 46,000
Income Summary $ 46,000

Income Summary $ 47,600


Maintenance and Repairs Expense $ 4,400
Depreciation Expense $ 2,800
Insurance Expense $ 1,200
Salaries and Wages Expense $ 35,200
Utilities Expense $ 4,000

Owner’s Capital $ 1,600


Income Summary $ 1,600

Owner’s Capital $ 7,200


Owner’s Drawings $ 7,200

Answer C
T-accounts
Income Summary
Maintenance and Repairs Expense $ 4,400 Service Revenue $ 46,000
Depreciation Expense $ 2,800 Owner’s Capital $ 1,600
Insurance Expense $ 1,200
Salaries and Wages Expense $ 35,200
Utilities Expense $ 4,000

$ 47,600 $ 47,600
Classified Balance Sheet
Cash $ 6,200 Owner’s Capital $ 25,200
Accounts Receivable $ 7,500 Accumulated Depreciation—Equip. $ 8,600
Prepaid Insurance $ 1,800 Accounts Payable $ 11,700
Equipment $ 33,000 Salaries and Wages Payable $ 3,000

$ 48,500 $ 48,500 0
Answer D
Post Closing Trial Balance

Cash $ 6,200
Accounts Receivable $ 7,500
Prepaid Insurance $ 1,800
Equipment $ 33,000
Accumulated Depreciation—Equip. $ 8,600
Accounts Payable $ 11,700
Salaries and Wages Payable $ 3,000
Owner’s Capital $ 25,200

$ 48,500 $ 48,500

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