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Flint Inc operates a cable television system At December 31 2009 the following unadjusted account balances were available Cash

Flint, Inc., operates a cable television system. At December 31, 2009, the following unadjusted account balances were available:
Cash ………………………………………………………. $ 2,000
Accounts Receivable ……………………………………… 89,000
Office Supplies ……………………………………………. 5,000
Land ………………………………………………………. $ 37,000
Building …………………………………………………… 209,000
Accumulated Depreciation, Building ……………………... 40,000
Equipment …………………………………………………. 794,000
Accumulated Depreciation, Equipment ………………….... 262,000
Other Assets ………………………………………………. 19,700
Accounts Payable …………………………………………. 29,500
Notes Payable (due in 2013) ……………………………… 250,000
Common Stock …………………………………………… 300,000
Retained Earnings, 12/31/2008 …………………………… 14,700
Dividends ………………………………………………… 28,000
Service Revenue ………………………………………….. 985,000
Subscription Expense …………………………………….. 398,000
Telephone Expense ………………………………………. 10,500
Utilities Expense …………………………………………. 34,000
Wages Expense …………………………………………… 196,000
Miscellaneous Expense …………………………………… 44,000
Interest Expense ………………………………………….. 15,000
The following data are available for adjusting entries:
a. At year-end $1,500 of office supplies remain unused.
b. Annual depreciation on the building is $20,000.
c. Annual depreciation on the equipment is $150,000.
d. The interest rate on the note is 8 percent. Four months’ interest is unpaid and unrecorded at December 31, 2009.
e. At December 31, 2009, service revenue of $94,000 has been earned but is unbilled and unrecorded. f. Utility bills of $2,800 are unpaid and unrecorded at December 31, 2009.
g. The income tax rate is 25 percent.
Required:
1. Prepare a worksheet for Flint.
2. Prepare an income statement, a statement of changes in retained earnings, and a classified balance sheet for Flint.
3. Prepare the closing entries.

May 14 2020 View more View Less

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