Final Review
(Financial Statement Practice Problem)
Never credit cash in AJE
h = paid
Peppermint Design Co.
Post-Closing Trial Balance
December 31, 2018
Debit
Credit
Cash
$75,000
Accounts Receivable
10,000
Allowance for DA
2,000
Supplies
12,000
Building
45,000
Accum. Dep. Building
$12,000
Land
100,000
Accounts Payable
5,000
Unearned Fee Revenue
38,000
Capital Stock
78,000
Retained Earnings
107,000
Total
$242,000
$242,000
During 2019, the company had the following transactions:
A. Received $90,000 for design services provided.
B. Paid $3,600 for property taxes from July 1, 2019 to June 30, 2020.
C. Purchased supplies for $6,000 on account
D. Paid salaries of $15,000
E. Received $5,000 from customer on account
F. Paid utilities of $8,000
G. Purchased a piece of equipment for $10,000, signing a note for the total amount.
H. Paid dividend of $5,000
Required:
1. Prepare journal entries for the 2019 transactions
2. Post the journal entries to the ledger (t-accounts)
3. Prepare an unadjusted trial balance as of December 31, 2019
4. Complete the adjusting entries below:
a. Supplies on hand, $11,000
b. Unearned Fees at the end of the period, $22,000
c. Depreciation of Building, $8,000
d. Salaries accrued but unpaid, $4,000
e. Wrote off $2,000 customers on account
5. Prepare an Income Statement, Balance Sheet, Statement of Stockholders' Equity (or
Retained Earnings) for the year ending December 31, 2019.
6. Prepare closing entries
7. Prepare Post-Closing Trial Balance
