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.
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