The trial balance of Giambi Investment Advisers

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P4-31B Preparing a worksheet, financial statements, and closing entries
[50-60 min]
The trial balance of Giambi Investment Advisers at December 31, 2012, follows:

GIAMBI INVESTMENT ADVISERS
Trial Balance
December 31, 2012

Cash $28,000
Accounts receivable 50,000
Supplies 8,000

so on ....
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 owner’s equity, 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)