Chapter 4: Q1RQ (page 216)
What document are financial statements prepared from?
Adjusted trial balance are used to prepare financial statements.
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The adjusted trial balance of Stone Sign Company follows: Account Title Prepaid Rent Cash Debit Credit Office Supplies Equipment Accumulated Depreciation—Equipment Accounts Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Common Stock Dividends Service Revenue Salaries Expense Rent Expense Depreciation Expense—Equipment Supplies Expense Balance \( 15,400 \) 85,500 \( 85,500 100 \) 7,000 3,800 4,300 4,200 800 48,800 17,300 1,400 3,700 1,500 1,400 60,000 300 400 Utilities Expense 600 Total STONE SIGN COMPANY Adjusted Trial Balance January 31, 2018 Requirements 1. Assume Stone Sign Company has a January 31 year-end. Journalize Stone’s closing entries at January 31. 2. How much net income or net loss did Stone Sign Company earn for the year ended January 31? How can you tell?
What is a classified balance sheet?
For each account listed, identify whether the account would appear on the post-closing trial balance. Indicate either yes or no.
20. Retained Earnings
For each account listed, identify the category in which it would appear on a classified balance sheet.
3. Land
What are temporary accounts? Are temporary accounts closed in the closing process?
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