Vang Management Services
Worksheet
For the Year Ended December 31, 2017
Trial Balance Adjustment
Accounts Titles
Debit Credit Debit Credit
Cash $ 13.800
Accounts Receivable $ 28.300
Prepaid Insurance $ 3.600 $1,200
Land $ 67.000
Buildings $ 127.000
Equipment $ 59.000
Accounts Payable $ 12.500
Unearned Rent Revenue $ 6.000 $4,500
Mortgage Payable $ 120.000
Owner's Capital $ 144.000
Owner's Drawings $ 22.000
Service Revenue $ 90.700
Rent Revenue $ 29.000 $ 4.500
Salaries & Wages Expense $ 42.000
Advertising Expense $ 20.500
Utilities Expense $ 19.000
Totals $ 402.200 $ 402.200
Insurance Expense $ 1.200
Depreciation Expense $ 6.600
Accumulated Depreciation-Buildings $ 3.000
Accumulated Depreciation-Equipment $ 3.600
Interest Expense $ 10.000
Interest Payable $ 10.000
Totals $ 22.300 $ 22.300
Net Income
Totals
gement Services
rksheet
d December 31, 2017
Adjusted Trial
Income Statement Balance Sheet
Balance
Debit Credit Debit Credit Debit Credit
$ 13.800 $ 13.800
$ 28.300 $ 28.300
$ 2.400 $ 2.400
$ 67.000 $ 67.000
$ 127.000 $ 127.000
$ 59.000 $ 59.000
$ 12.500 $ 12.500
$ 1.500 $ 1.500
$ 120.000 $ 120.000
$ 144.000 $ 144.000
$ 22.000 $ 22.000
$ 90.700 $ 90.700
$ 33.500 $ 33.500
$ 42.000 $ 42.000
$ 20.500 $ 20.500
$ 19.000 $ 19.000
$ 1.200 $ 1.200
$ 6.600 $ 6.600
$ 3.000 $ 3.000
$ 3.600 $ 3.600
$ 10.000 $ 10.000
$ 10.000
$ 418.800 $ 418.800 $ 99.300
$ 24.900 $ 24.900
$ 124.200 $ 124.200 $ 319.500 $ 319.500
Vang Management Services
Balance Sheet
December 31, 2017
Particulars Amount Amount
Assets
Current Assets
Cash $ 13.800
Accounts Receivable $ 28.300
Prepaid Insurance $ 2.400
Total Current Assets $ 44.500
Property, plant and equipment
Land $ 67.000
Buildings $ 127.000
Less: Accumulated Depreciation-Buildings (3, 000) $ 124.000
Equipment $ 59.000
Less: Accumulated Depreciation-Equipment (3, 600) $ 55.400
Total Long Term assets $ 246.400
Total Assets $ 290.900
Liabilities and Owner's Equity
Current Liabilities
Accounts Payable $ 12.500
Unearned Rent Revenue $ 1.500
Mortgage Payable (Current) $ 30.000
Interest Payable $ 10.000
Total Current Liabilities $54, 000
Long Term Liabilities
Mortgage Payable $ 90.000
Total Long Term Liabilities $ 90.000
$ 144.000
Owner's Equity
Owner's Capital (December 31) $ 144.000
Add: Net Income $ 24.900
$ 168.900
Less: Owner's Drawings (22, 000)
Totals Owner's Equity $ 146.900
Total Liabilities & Owner's Equity $ 290.900
Vang Management Services
Balance Sheet
December 31, 2017
Assets
Current Assets
Cash $ 13,800
Accounts Receivable $ 28,300
Prepaid Insurance $ 2,400
Total Current Assets
Property, plant and equipment
Land $ 67,000
Buildings $ 127,000
Less: Accumulated Depreciation-Buildings $ 3,000 $ 124,000
Equipment $ 59,000
Less: Accumulated Depreciation-Equipment $ 3,600 $ 55,400
Total PPE
Total Assets
Liabilities and Owner's Equity
Current Liabilities
Accounts Payable $ 12,500
Unearned Rent Revenue $ 1,500
Mortgage Payable (Current) $ 30,000
Interest Payable $ 10,000
Total Current Liabilities
Long Term Liabilities
Mortgage Payable $ 90,000
Total Long Term Liabilities
Total Liabilities
Owner's Equity
Owner's Capital $ 146,900
Totals Owner's Equity
Total Liabilities & Owner's Equity
Owner's Capital (December 31) $ 144,000
Add: Net Income $ 24,900
$ 168,900
Less: Owner's Drawings $ 22,000
$ 146,900
$ 44,500
$ 246,400
$ 290,900
$ 54,000
$ 90,000
$ 144,000
$ 146,900
$ 290,900
Vang Management Services
Adjusting Journal Entries
Date Account tittles & Equipment Ref. Debit
Dec-31 Insurance Expense $ 1,200
Prepaid Insurance
(To record prepaid Insurance expired)
Dec-31 Depreciation Expense $ 3.000
Accumulated Depreciation Buildings
(To record Depreciation Expense on buildinati
Dec-31 Depreciation Expense Equipment $ 3.600
Accumulated Depreciation Equipment
(To record Depreciation Expense on Equipment
Dec-31 Unearned Rent Revenue $ 4.500
Rent Revenue
(To record unearned rent revenue earned)
Dec-31 Interest Expense $ 10.000
Interest payable
(To record accrued interest expense)
Credit
$ 1,200
$ 3.000
$ 3.600
$ 4.500
$ 10.000
Vang Management Services
Closing Journal Entries
Date Account titles & Explanations Ref. Debit Credit
Dec-31 Service Revenue $ 90.700
Rent Revenue $ 33.500
Income Summary $ 124.200
(To close Revenues)
Dec-31 Income Summary $ 99.300
Salaries & Wages Expense $ 42.000
Advertising Expense $ 20.500
Utilities Expense $ 19.000
Insurance Expense $ 12.000
Depreciation Expense $ 6.600
Interest Expense $ 10.000
(To close Expenses)
Dec-31 Income Summary $ 24.900
Owner's Capital $ 24.900
(To transfer net income to the Capital)
Dec-31 Owner's Capital $ 22.000
Owner's Drawings $ 22.000
(To transfer Drawings to the Capital)
Vang Management Services
Post-Closing Trial Balance
December 31, 2017
Accounts title Debit Credit
Cash $ 13,800
Accounts Receivable $ 28,300
Prepaid Insurance $ 2,400
Land $ 67,000
Buildings $ 127,000
Accumulated Depreciation-Buildings $ 3,000
Equipment $ 59,000
Accumulated Depreciation-Equipment $ 3,600
Accounts Payable $ 12,500
Unearned Rent Revenue $ 1,500
Mortgage Payable $ 120,000
Owner's Capital $ 146,900
Interest Payable ________ $ 10,000
Totals $ 297,500 $ 297,500
