Just add to the balances that are already listed Requirement 6 Prepare an

Just add to the balances that are already listed

This preview shows page 7 - 14 out of 16 pages.

Just add to the balances that are already listed.
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Requirement #6: Prepare an adjusted trial balance in the space below. Melvin Plumbing Corporation Adjusted Trial Balance July 31 Cash 90005 Equipment 11500 Supplies 375 Accounts Payable 10400 Insurance Expense 400 Rent Expense 5500 Salary Expense 3300 Service Revenue 16205 Common Stock 90000 Dividends 600 Accumulated Depreciation 175 Depreciation Expense 175 Supplies Expense 525 Prepaid Insurance 4400 Tax Expense 3200 Tax Payable 3200 119980 119980
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Requirement #7: Prepare the financial statements for the Melvin Plumbing Corporation as of July 31 in the space below. You will only be preparing the income statement, statement of retained earnings, and the balance sheet. The statement of cash flows is a required financial statement, but is not required for this case study. Melvin Plumbing Corporation Melvin Plumbing Corporation Income Statement Statement of Retained Earnings For the Month Ending July 31 For the Month Ending July 31 Revenues: Retained Earnings, July 1 Revenue $ 16,205 Add: Net Income 3,105 Subtotal Expenses: Less: Dividends 600 Rent Expense 5,500 Retained Earnings, July 31 $ 2,505 Salaries Expense 3,300 Insurance Expense 400 Supplies Expense 525 Depreciation Expense 175 Income Tax Expense 3,200 Total Expenses 13,100 Net Income $ 3,105
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Melvin Plumbing Corporation Balance Sheet July 31 Assets: Cash 90,005 Supplies 375 Prepaid Insurance 4,400 Equipment 11,500 Less: Accum. Depr. 175 Total Assets 106,105 Liabilities: Accounts Payable 10,400 Income Tax Payable 3,200 Total Liabilities 13600 Stockholders' Equity: Common Stock 90,000 Retained Earnings 2,505 Total Stockholders' Equity 92,505 Total Liabilities and Stockholders' Equity $106,105
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Requirement #8: Prepare the closing entries at July 31 in the General Journal below. General Journal Date Description (Account Name) Debit Credit 31-Jul Service Revenue 16,205 Income Summary 16,205 31 Income Summary 13,100 Rent Expense 5,500 Salaries Expense 3,300 Insurance Expense 400 Supplies Expense 525 Depreciation Expense 175 Income Tax Expense 3,200 31 Income Summary 2,505 Retained Earnings 2,505 31 Retained Earnings 600 Dividend 600 Requirement #9: Post the closing entries to the General Ledger T-accounts and compute ending balances. Just add to the adjusted balances already listed.
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Requirement #10: Prepare a post-closing trial balance as of July 31 in the space below. Melvin Plumbing Corporation Post-Closing Trial Balance July 31 Cash 90,005 Equipment 11,500 Supplies 375 Accounts Payable 10,400 Common Stock 90,000 Accumulated Depreciation 175 Prepaid Insurance 4,400 Tax Payable 3,200 Retained Earnings 2,505 106,280 106,280
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Case Study 1 Rubric Please note that this rubric provides a general guideline, b and the maximum number of points for that step, depend of your work. Criteria Outstanding Good Poor 20 points 16 points 12 points 10 points 8 points 6 points 10 points 8 points 6 points 10 points 8 points 6 points 10 points 8 points 6 points Step 1 Prepared Journal Entries (20 points) Journal entries use accurate accounts and amounts; and debits and credits are used correctly. Minor errors such as incorrect account names or credits listed prior to debits. Errors in computations that resulted in incorrect amounts to be debited and credited. Step 2 Posted to the General Ledger (10 points) Posting is correct, leading to accurate account balances.
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