P4-25A Preparing a worksheet, financial statements, and closing entries [50-60 min] The trial balance of Fugazy Investment Advisers, Inc., at December 31, 2012, follows

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P4-25A Preparing a worksheet, financial statements, and closing entries
[50-60 min]
The trial balance of Fugazy Investment Advisers, Inc., at December 31, 2012, follows

FUGAZY INVESTMENT ADVISERS, INC.
Trial Balance
December 31, 2012
Cash
Accounts receivable
Supplies
Equipment
Accumulated depreciation
Accounts payable
Salary payable
Unearned service revenue
Note payable, long-term
Common stock
Retained earnings
Dividends
Service revenue
Salary expense
Supplies expense
Depreciation expense
Interest expense
Rent expense
Insurance expense
Total
Account Debit
$ 32,000
46,000
3,000
25,000
50,000
32,000
3,000
9,000
2,000
$202,000
Credit
$ 11,000
15,000
2,000
39,000
17,600
20,400
97,000
$202,000
Adjustment data at December 31, 2012:

Unearned service revenue earned during the year, $500.
Supplies on hand, $1,000.
Depreciation for the year, $6,000.
Accrued salary expense, $1,000.
Accrued service revenue, $4,000.

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)