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Question 5

The adjusted trial balance for Sunland Fishing Centre is as follows:

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SUNLAND FISHING CENTRE

Adjusted Trial Balance

March 31, 2017

Debit

Credit

Cash

$7,800

Interest receivable

700

Supplies

1,350

Debt investments

28,000

Land

47,000

Building

195,000

Accumulated depreciation—building

$31,000

Equipment

37,000

Accumulated depreciation—equipment

18,500

Accounts payable

5,000

Interest payable

930

Unearned revenue

2,300

Notes payable ($6,000 must be paid in 2018)

65,000

R. Falkner, capital

171,120

R. Falkner, drawings

45,000

Service revenue

126,000

Interest revenue

1,600

Depreciation expense

9,950

Interest expense

3,850

Insurance expense

4,700

Salaries expense

30,500

Supplies expense

5,400

Utilities expense

5,200

$421,450

$421,450

Make an income statement for the year ended March 31, 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)


SUNLAND FISHING CENTRE

Income Statement









$







$



























$



Make a statement of owner's equity. The owner, Rachael Falkner, invested $2,000 cash in the business during the year. (Note: The investment has been recorded and it is included in the capital account.) (List items that increase owner's equity first.)


SUNLAND FISHING CENTRE

Statement of Owner's Equity







$




:


$










:






$



Make a classified balance sheet. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)


SUNLAND FISHING CENTRE

Balance Sheet





Assets





$


















$




$




:










:








$


Liabilities and Owner's Equity





$





























$



Make the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)


Date

Account Titles and Explanation

Debit

Credit

Mar. 31













(To close revenue accounts)Mar. 31





























(To close expense accounts)Mar. 31









(To close profit to capital)Mar. 31









(To close drawings account)


Use T accounts to post the closing entries and calculate the balance in each account. (Ignore the accounts not affected by the closing entries.)


Income Summary

















R. Falkner, Capital

















R. Falkner, Drawings












Service Revenue












Interest Revenue












Depreciation Expense












Insurance Expense












Interest Expense












Salaries Expense












Supplies Expense












Utilities Expense













Make a post-closing trial balance and compare the balance in the R. Falkner, Capital account with the information in the statement of owner's equity. (List only those accounts that have an ending balance.)


SUNLAND FISHING CENTRE

Post-Closing Trial Balance



Debit

Credit



$


$






















































Totals$


$




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