Question: The account balances of Miss Beverly’s
The account balances of Miss Beverly’s Tutoring Service as of June 30, the end of the current fiscal year, are as follows:
1. Data for the adjustments are as follows:
a. Expired or used up insurance, $470.
b. Depreciation expense on equipment, $948.
c. Depreciation expense on the van, $1,490.
d. Salary accrued (earned) since the last payday, $574 (owed and to be paid on the next payday).
e. Supplies remaining as of June 30, $407.
Your instructor may want you to use a work sheet for these adjustments.
2. Journalize the adjusting entries.
3. Prepare an income statement.
4. Prepare a statement of owner’s equity. Assume that there was an additional investment of $3,000 on June 10.
5. Prepare a balance sheet.
6. Journalize the closing entries using the four steps in the proper sequence.
*If you are using CLGL, use the year 2020 when recording transactions and preparing reports
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