You will only be preparing the income statement

You will only be preparing the income statement, statement of retained earnings, and the balanc
The statement of cash flows is a required financial statement, but is not required for this case s
Melvin Plumbing Corporation Melvin Plumbing Corporatio
Income Statement Statement of Retained Earnin
For the Month Ending July 31 For the Month Ending July 3
Revenues: $16,205 Retained Earnings, July 1
Revenue $ 16,205 Add: Net Income
Subtotal
Expenses: Less: Dividends
Rent Expense $5,500 Retained Earnings, July 31
Salaries Expense 3,300
Insurance Expense 100
Supplies Expense 900
Depreciation Expense 100
Income Tax Expense 3,200
Total Expenses 13,100
Net Income $ 3,105

e below.
ce sheet.
study.
on Melvin Plumbing Corporation
ngs Balance Sheet
31 July 31
Assets:
3,105 Cash 90,005
3,105 Supplies 4,700
600 Prepaid Insurance 3,300
$ 2,505 Equipment 11,500
Less: Accum. Depr. -3,400
Total Assets $106,105
Liabilities:
Accounts Payable 10,400
Income Tax Payable 3,200
Total Liabilities 13,600
Stockholders' Equity:
Common Stock 90,000
Retained Earnings 2,505
Total Stockholders' Equity 92,505
Total Liabilities and
Stockholders' Equity $ 106,105

Requirement #8:
Prepare the closing entries at July 31 in the General Journal below.
General Journal
Date Description (Account Name) Debit Credit
31-Jul Revenue 16205
Retained Earnings 2530
Rent Expense 5500
Employee Expense 3300
Insurance 100
Sullpies Expense 900
Deperication Expense 175
Income Tax Expense 3200
Dividends 500
Balance 16205 16205
Requirement #9:
Post the closing entries to the General Ledger T-accounts and compute ending balances.
Just add to the adjusted balances already listed.

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 90,000
Prepaid Insurance 4,800
Supplies 480
Equipment 11,000
Account Payable
Income Taxes Payable 10,400
Common Stock 3,200
Retained Earning 90,000
Accumilated Depreciation 2,580
100
106,280 106,280

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.
Posting is
mostly correct,
but minor
errors are
evident.
Posting has
several errors that
resulted in
incorrect account
balances.
Step 3
Prepared a
Trial Balance
(10 points)
Correct
account
names and
balances so
to arrive at a
correct trial
balance.
Some minor
errors such as
incorrect
account names
or incorrect
totals due to
errors in prior
steps.