View the step-by-step solution to: P4-3A The completed financial statement columns of the

P4-3A The completed financial statement columns of the worksheet for Woods Company are shown below. WOODS COMPANY Worksheet For the Year Ended December 31, 2008 Income Statement Balance Sheet Acc. No. Account Titles Dr. Cr. Dr. Cr. 101 Cash 8,200 112 Accounts Receivable 7,500 130 Prepaid Insurance 1,800 157 Equipment 28,000 167 Accumulated Depreciation 8,600 201 Accounts Payable 11,700 212 Salaries Payable 3,000 311 Common Stock 20,000 320 Retained Earnings 14,000 332 Dividends 7,200 400 Service Revenue 44,000 622 Repair Expense 5,400 711 Depreciation Expense 2,800 722 Insurance Expense 1,200 726 Salaries Expense 35,200 732 Utilities Expense 4,000 Totals 48,600 44,000 52,700 57,300 Net Loss 4,600 4,600 48,600 48,600 57,300 57,300 Prepare an income statement, a retained earnings statement, and a classified balance sheet. No additional common stock was issued during 2008. (If there is a net loss, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45) to enter the amount in Income statement. Enter all other amounts as positive amounts and subtract where necessary. List assets in order of liquidity and all other amounts from largest to smallest e.g. 10, 5, 3, 2.) WOODS COMPANY Income Statement For the Year Ended December 31, 2008 Revenues Service revenueUtilities expenseDepreciation expenseSalaries expenseRepair expenseInsurance expense $ Expenses Service revenueUtilities expenseRepair expenseDepreciation expenseInsurance expenseSalaries expense $ Salaries expenseRepair expenseService revenueUtilities expenseDepreciation expenseInsurance expense Utilities expenseRepair expenseSalaries expenseInsurance expenseService revenueDepreciation expense Depreciation expenseUtilities expenseRepair expenseSalaries expenseService revenueInsurance expense Insurance expenseRepair expenseDepreciation expenseUtilities expenseSalaries expenseService revenue Total expenses Net income (loss) $ WOODS COMPANY Retained Earnings Statement For the Year Ended December 31, 2008 Additional investment by ownerNet lossRetained earnings, January 1Retained earnings, December 31Dividends $ Less: Net lossDividendsRetained earnings, January 1Additional investment by ownerRetained earnings, December 31 $ DividendsRetained earnings, December 31Retained earnings, January 1Net lossAdditional investment by owner DividendsRetained earnings, December 31Net lossAdditional investment by ownerRetained earnings, January 1 $ WOODS COMPANY Balance Sheet December 31, 2008 Assets Current Assets EquipmentPrepaid insuranceSalaries payableCashRetained earningsAccounts receivableAccumulated depreciationCommon stockAccounts payable $ Retained earningsAccumulated depreciationEquipmentAccounts payableSalaries payableCommon stockAccounts receivableCashPrepaid insurance Retained earningsEquipmentCommon stockPrepaid insuranceAccounts receivableCashAccumulated depreciationAccounts payableSalaries payable Total current assets Property, plant and equipment Retained earningsCashSalaries payableAccumulated depreciationEquipmentCommon stockAccounts payablePrepaid insuranceAccounts receivable $ Less: EquipmentAccumulated depreciationCommon stockPrepaid insuranceCashSalaries payableRetained earningsAccounts receivableAccounts payable Total assets $ Liabilities and Stockholders' Equity Current liabilities Accumulated depreciationAccounts payablePrepaid insuranceAccounts receivableEquipmentCommon stockCashSalaries payableRetained earnings $ Retained earningsCashSalaries payableCommon stockAccounts payablePrepaid insuranceAccumulated depreciationEquipmentAccounts receivable Total current liabilities Stockholders' Equity Accounts payableAccumulated depreciationCashEquipmentPrepaid insuranceRetained earningsAccounts receivableCommon stockSalaries payable $ Salaries payableAccumulated depreciationEquipmentPrepaid insuranceAccounts receivableCashCommon stockAccounts payableRetained earnings Total stockholders' equity Total liabilities and stockholders' equity $ Prepare the closing entries. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Date Description/Account Debit Credit Dec. 31 DividendsDepreciation expenseRetained earningsUtilities expenseService revenueInsurance expenseIncome summaryRepair expenseSalaries expense DividendsDepreciation expenseRetained earningsRepair expenseIncome summaryUtilities expenseInsurance expenseService revenueSalaries expense (To close revenue account.) Dec. 31 Salaries expenseRepair expenseIncome summaryRetained earningsService revenueDepreciation expenseInsurance expenseUtilities expenseDividends Income summaryDividendsService revenueRetained earningsUtilities expenseSalaries expenseInsurance expenseRepair expenseDepreciation expense Utilities expenseService revenueInsurance expenseSalaries expenseRepair expenseIncome summaryDividendsRetained earningsDepreciation expense Utilities expenseRetained earningsDividendsRepair expenseSalaries expenseIncome summaryInsurance expenseService revenueDepreciation expense DividendsUtilities expenseIncome summarySalaries expenseRepair expenseInsurance expenseRetained earningsDepreciation expenseService revenue &$ DividendsRetained earningsRepair expenseInsurance expenseService revenueIncome summaryDepreciation expenseSalaries expenseUtilities expense (To close expense accounts.) Dec. 31 Repair expenseRetained earningsDepreciation expenseInsurance expenseSalaries expenseUtilities expenseDividendsService revenueIncome summary Utilities expenseIncome summaryDividendsService revenueRepair expenseRetained earningsDepreciation expenseInsurance expenseSalaries expense (To close net income to retained earnings.) Dec. 31 Retained earningsService revenueInsurance expenseUtilities expenseRepair expenseDividendsIncome summaryDepreciation expenseSalaries expense Retained earningsDividendsService revenueInsurance expenseRepair expenseSalaries expenseIncome summaryUtilities expenseDepreciation expense (To close dividends to capital.) Post the closing entries and rule and balance the accounts. Use T accounts. Income Summary is account No. 350. (Enter amounts in the order of journal entries passed in the previous question.) Retained Earnings Repair Expense 12/31 12/31 Bal. 12/31 Bal. 12/31 12/31 12/31 Bal. Depreciation Expense 12/31 Bal. 12/31 Dividends 12/31 Bal. 12/31 Insurance Expense 12/31 Bal. 12/31 Income Summary 12/31 12/31 Salaries Expense 12/31 12/31 Bal. 12/31 Utilities Expense Service Revenue 12/31 Bal. 12/31 12/31 12/31 Bal. Prepare a post-closing trial balance. (If answer is zero, please enter 0. Do not leave any fields blank.) WOODS COMPANY Post-Closing Trial Balance December 31, 2008 Trial Balance Account Titles Dr. Cr. Cash $ $ Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Salaries Payable Common Stock Retained earnings $ $
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