week 4 lt exercise

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    PORTER COMPANY Balance Sheet

    Date 31-Dec-08

    Assets 2008

    Current Assets

    Cash 18,800$

    Account Recievable 16,200$Inventory 2,300$

    Short-Term Investments 38,300$

    Prepaid Expenses 61,400$

    Total Current Assets 137,000$

    Fixed (Long-term) Assets

    Long-term Investments 4,400$

    Property, Plant, and Equipment 44,000$

    (Less accumulated depreciation) (20,000)$

    Intangible assets

    Total lived assets 28,400$

    Other assets

    Deferred Income Tax

    Other

    Total Other Assets 165,400$

    Total assets

    Liabilities and Owner's Equity

    Current Liabilities

    Accounts Payable 31,600$

    Short-term loansIncome tax payable

    Accured salaries and wages 39,000$

    Unearned Revenue

    Current portion of long-term debt

    Total current liabilities 70,600$

    Long-Term Liabilities

    Long-term debt

    Deferred income tax

    Other 46,800$

    Total long-term liabilties

    Owner's Equity

    Owner's Investment 42,000$

    Retained Earnings 6,000$

    Other

    Total owner's equity 94,800$

    Total Liabities and Owner's Equity 165,400$

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    Revenues

    Service Revenue

    Expenses

    Advertising ExpenseSupplies Expense

    Depreciation Expense

    Insurance Expense

    Salaries Expense

    Interest Expense

    Total Expenses

    Net Income

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    Porter Company

    Income Statement

    For the Year Ended December 31, 2008

    $77,800

    $12,000$3,700

    $8,000

    $4,000

    $39,000

    $1,000

    ($67,700)

    $10,100

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    Porter Company

    Retained Earnings Statement

    For the Year Ended December 31, 2008

    Retained Earnings, January 1, 2008 $6,000

    Add: Net Income $10,100

    $16,100

    Less: Dividends ($12,000)Retained Earnings, December 31, 2008 $4,100

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    Current Assets

    Cash

    Accounts ReceivableSupplies

    Prepaid Insurance

    Total Current Assets

    Equipment

    Office Equipment

    Less: Accumulated Depreciation-Office Equipment

    Total Assets

    Li

    Current LiabilitiesNotes Payable

    Accounts Payable

    Interest Payable

    Salaries Payable

    Total Current Liabilities

    Long Term Liabilities

    Notes Payable

    Total Liabilities

    Stockholders' Equity

    Common StockRetained Earnings

    Total Stockholders' Equity

    Total Liabilities and Stockholders' Equity

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    Porter Company

    Balance Sheet

    31-Dec-08

    Assets

    $18,800

    $16,200$2,300

    $4,400

    $41,700

    $44,000

    ($20,000) $24,000

    $65,700

    abilities and Stockholders' Equity

    $10,000

    $8,000

    $1,000

    $2,600

    $21,600

    $10,000

    $31,600

    $30,000$4,100

    $34,100

    $65,700

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    General Journal

    Date Account Titles and Explanation Ref. Debit Credit

    Closing Entries

    2008

    Dec. 31 Service Revenue 400 77,800

    Income Summary 350 77,800

    31 Income Summary 350 67,700

    Advertising Expense 610 12,000

    Supplies Expense 631 3,700

    Depreciation Expense 711 8,000

    Insurance Expense 722 4,000

    Salaries Expense 726 39,000

    Interest Expense 905 1,000

    31 Income Summary 350 10,100

    Retained Earnings 320 10,100

    31 Retained Earnings 320 12,000

    Dividends 332 12,000

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    Adjusted Trial Balance

    No. Account Titles Dr. Cr.

    151 Office Equipment 44,000

    152 Accumulated Depreciation- Office Equipment 20,000

    200 Notes Payable 20,000

    201 Accounts Payable 8,000

    212 Salaries Payable 2,600230 Interest Payable 1,000

    311 Common Stock 30,000

    320 Retained Earnings 6,000

    332 Dividends 12,000

    350 Income Summary 67,700

    400 Service Revenue 77,800

    610 Advertising Expense 12,000

    631 Supplies Expense 3,700

    711 Depreciation Expense 8,000

    722 Insurance Expense 4,000

    726 Salaries Expense 39,000

    905 Interest Expense 1,000

    Total 233,100 233,100

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    PORTER COMPANY

    Post Closing Trial Balance

    For the Year Ended December 31, 2008

    Account

    NumberAccount Titles Debit Credit

    101 Cash 18,800112 Accounts Receivable 16,200

    126 Supplies 2,300

    130 Prepaid Insurance 4,400

    151 Office Equipment 44,000

    152 Accumulated DepreciationOffice Equipment 20,000

    200 Notes Payable 20,000

    201 Accounts Payable 8,000

    212 Salaries Payable 2,600

    230 Interest Payable 1,000

    311 Common Stock 30,000320 Retained Earnings 4,100

    Totals 85,700 85,700