Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

Exercise 15

Preparing a worksheet, financial statements, and closing entries
The trial balance of Giambi Investment Advisers, Inc., at December 31, 2012, follows:

Adjustment data at December 31, 2012:
a. Unearned service revenue earned during the year, $500.
b. Supplies on hand, $5,000.
c. Depreciation for the year, $8,000.
d. Accrued salary expense, $1,000.
e. Accrued service revenue, $3,000.
Requirements
1. Enter the account data in the Trial Balance columns of a worksheet, and complete the worksheet through the Adjusted Trial Balance. Key each adjusting entry by the letter corresponding to the data given. Leave a blank line under Service revenue.
2. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in account format.
3. Prepare closing journal entries from the worksheet.
4. Did the company have a good or a bad year during 2012 Give the reason for your answer. (Challenge)