The adjusted trial balance columns for William Company are as follows on Dec 31, 2014.
(A) Prepare an income statement, and a classified balance sheet, Dec 31, 2014.
(B) Prepare the closing entries.
(C) Calculate Gross Profit Rate and Profit Margin.
Debit Credit
101 Cash 17,800
112 Accounts Receivable 14,400
126 Supplies 2,300
130 Prepaid Insurance 4,400
151 Equipment 46,000
152 Accumulated Depreciation-Equip 18,000
200 Notes Payable 20,000
(Note: $5,000 of the notes payable become due in 2015.)
201 Accounts Payable 8,000
212 Salaries and Wages Payable 2,600
230 Interest Payable 1,000
311 Common Stock 15,000
320 Retained Earnings 9,800
332 Dividends 12,000
400 Service Revenue 86,200
610 Advertising Expense 10,000
631 Supplies Expense 3,700
711 Depreciation Expense 6,000
722 Insurance Expense 4,000
726 Salaries and Wages Expense 39,000
905 Interest Expense 1,000
Totals 160,600 160,600
