MARK CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2020 Debit Credit Cash $29,500 Accounts Receivab
MARK CONSULTING ENGINEER
TRIAL BALANCE
DECEMBER 31, 2020
Debit
Credit
Cash
$29,500
Accounts Receivable
56,600
Allowance for Doubtful Accounts
$776
Supplies
1,630
Prepaid Insurance
1,510
Equipment
33,500
Accumulated Depreciation-Equipment
6,314
Notes Payable
7,200
Common Stock
10,000
Retained Earnings
25,979
Service Revenue
117,759
Rent Expense
10,088
Salaries and Wages Expense
33,260
Utilities Expenses
1,150
Office Expense
790
$168,028
$168,028 1. Fees received in advance from clients $5,850, which were recorded as revenue. 2. Services performed for clients that were not recorded by December 31, $4,949. 3. Bad debt expense for the year is $1,565. 4. Insurance expired during the year $474. 5. Equipment is being depreciated at 10% per year. 6. Mark gave the bank a 90-day, 10% note for $7,200 on December 1, 2020. 7. Rent of the building is $776 per month. The rent for 2020 has been paid, as has that for January 2021, and recorded as Rent Expense. 8. Office salaries and wages earned but unpaid December 31, 2020, $2,570.
part 1
From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No entry” for the account titles and enter 0 for the amounts.)
part 2
Prepare an income statement for 2020. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
part 3
Prepare a retained earnings statement for 2020. Mark paid a $17,150 cash dividend during the year. (recorded in Retained Earnings.) (List items that increase owner's capital first.)
part 4
Prepare a classified balance sheet for 2020. (List current assets in the order of liquidity.)
