Lamp Light Company maintains and repairs warning lights

Lamp Light Company maintains and repairs warning lights

Subject: Business    / Accounting
Question

Lamp Light Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Lamp Light Company prepared the following end-of-period spreadsheet at December 31, 2016, the end of thefiscal year:
Lamp Light Company
End-of-Period Spreadsheet
For the Year Ended December 31, 2016
Unadjusted Trial Balance    Adjustments    Adjusted Trial Balance
Account Title    Dr.    Cr.    Dr.    Cr.    Dr.    Cr.
Cash    10,800.00    10,800.00
Accounts Receivable    38,900.00    (a) 11,300.00    50,200.00
Prepaid Insurance    4,200.00    (b) 3,000.00    1,200.00
Supplies    2,730.00    (c) 2,250.00    480.00
Land    98,000.00    98,000.00
Building    400,000.00    400,000.00
Accumulated Depreciation-Building    205,300.00    (d) 10,100.00    215,400.00
Equipment    101,000.00    101,000.00
Accumulated Depreciation-Equipment    85,100.00    (e) 6,680.00    91,780.00
Accounts Payable    15,700.00    15,700.00
Salaries and Wages Payable    (f) 4,900.00    4,900.00
Unearned Rent    2,100.00    (g) 1,300.00    800.00
Common Stock    75,000.00    75,000.00
Retained Earnings    128,100.00    128,100.00
Dividends    10,000.00    10,000.00
Fees Earned    363,700.00    (a) 11,300.00    375,000.00
Rent Revenue    (g) 1,300.00    1,300.00
Salaries and Wages Expense    163,100.00    (f) 4,900.00    168,000.00
Advertising Expense    21,700.00    21,700.00
Utilities Expense    11,400.00    11,400.00
Depreciation Expense-Building    (d) 10,100.00    10,100.00
Repairs Expense    8,850.00    8,850.00
Depreciation Expense-Equipment    (e) 6,680.00    6,680.00
Insurance Expense    (b) 3,000.00    3,000.00
Supplies Expense    (c) 2,250.00    2,250.00
Miscellaneous Expense    4,320.00    4,320.00
875,000.00    875,000.00    39,530.00    39,530.00    907,980.00    907,980.00

Required:
1.    Prepare an income statement for the year ended December 31, 2016. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement.
2.    Prepare a retained earnings statement for the year ended December 31, 2016. Enter all amounts as positive numbers. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items.
3.    Prepare a balance sheet as of December 31, 2016. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other account names. You will not need to enter colons (:) or the word “Less” on the balance sheet; they will automatically insert where necessary.
4.    Based upon the end-of-period spreadsheet, journalize the closing entries.
5.    Prepare a post-closing trial balance.