Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 12

Brushstroke Art Studio, Inc., provides quality instruction to aspiring artists.he business adjusts its accounts monthly, but performs closing entries annually on December 31.his is the studio's unadjusted trial balance dated December 31, 2015.

Other Data
1.upplies on hand at December 31, 2015, total $1,000.
2.he studio pays rent quarterly (every three months).he last payment was made November 1, 2015.he next payment will be made early in February 2016.
3.tudio equipment is being depreciated over 120 months (10 years).
4.n October 1, 2015, the studio borrowed $24,000 by signing a 12-month, 12 percent note payable.he entire amount, plus interest, is due on September 30, 2016.
5.t December 31, 2015, $3,000 of previously unearned client fees had been earned.6.ccrued, but unrecorded and uncollected client fees earned total $690 at December 31, 2015.
7.ccrued, but unrecorded and unpaid salary expense totals $750 at December 31, 2015.
8.ccrued income taxes expense for the entire year ending December 31, 2015, total $7,000.he full amount is due early in 2016.
Instructions
a.repare the necessary adjusting journal entries on December 31, 2015.repare also an adjusted trial balance dated December 31, 2015.
b.rom the adjusted trial balance prepared in part a, prepare an income statement and statement of retained earnings for the year ended December 31, 2015.lso prepare the company's balance sheet dated December 31, 2015.
c.repare the necessary year-end closing entries.
d.repare an after-closing trial balance.
e.as the studio's monthly rent remained the same through out the year If not, has it gone up or down Explain.