Chapter 4 - Question 8 - 10.pdf - P4-7 Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per

Chapter 4 - Question 8 - 10.pdf - P4-7 Recording Adjusting...

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P4-7 Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income P4-7 Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share LO4-1, 4-2, 4-4 Statement Including Earnings per Share LO4-1, 4-2, 4-4 [The following information applies to the questions displayed below.] Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Account Titles Debit Credit Cash $ 46,000 Accounts receivable 11,500 Supplies 500 Prepaid insurance 670 Service trucks 17,100 Accumulated depreciation $ 9,500 Other assets 10,160 Accounts payable 2,270 Wages payable Income taxes payable Note payable (3 years; 10% interest due each December 31) 12,000 Common stock (4,500 shares outstanding) 1,946 Additional paid-in capital 17,514 Retained earnings 5,900 Service revenue 69,990 Remaining expenses (not detailed; excludes income tax) 33,190 Income tax expense Totals $ 119,120 $ 119,120 Data not yet recorded at December 31 included: a. The supplies count on December 31 re ected $210 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $670. c. Depreciation expense for the current year, $3,500.
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