Beacon Signals Company maintains and repairs warning lights

Beacon Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacon Signals Company prepared the following end-ofperiod spreadsheet at December 31, 2019, fiscal year:

Required:

	Beacon Signals Company
	End-of-Period Spreadsheet
	For the Year Ended December 31, 2019
	Unadjusted Trial Balance	Adjustments	Adjusted Trial Balance
Account Title	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	13,000.00				13,000.00
Accounts Receivable	40,500.00		(a) 12,500.00		53,000.00
Prepaid Insurance	4,200.00			(b) 3,000.00	1,200.00
Supplies	3,000.00			(c) 2,250.00	750.00
Land	98,000.00				98,000.00
Building	500,000.00				500,000.00
Accumulated Depreciation-Building		255,300.00		(d) 9,000.00		264,300.00
Equipment	121,900.00				121,900.00
Accumulated Depreciation-Equipment		100,100.00		(e) 4,500.00		104,600.00
Accounts Payable		15,700.00				15,700.00
Salaries and Wages Payable				(f) 4,900.00		4,900.00
Unearned Rent		2,100.00	(g) 1,300.00			800.00
Sarah Colin, Capital		238,100.00				238,100.00
Sarah Colin, Drawing	10,000.00				10,000.00
Fees Earned		388,700.00		(a) 12,500.00		401,200.00
Rent Revenue				(g) 1,300.00		1,300.00
Salaries and Wages Expense	163,100.00		(f) 4,900.00		168,000.00
Advertising Expense	21,700.00				21,700.00
Utilities Expense	11,400.00				11,400.00
Depreciation Expense-Building			(d) 9,000.00		9,000.00
Repairs Expense	8,850.00				8,850.00
Depreciation Expense-Equipment			(e) 4,500.00		4,500.00
Insurance Expense			(b) 3,000.00		3,000.00
Supplies Expense			(c) 2,250.00		2,250.00
Miscellaneous Expense	4,350.00				4,350.00
	1,000,000.00	1,000,000.00	37,450.00	37,450.00	1,030,900.00	1,030,900.00

Solution

BEACON SIGNALS COMPANY Income Statement For the Year Ended December 31, 2019 Fees earned $401,200 Rent revenue 1,300 Total revenues $402,500 Expenses: Salaries and wages expense $168,000 Advertising expense 21,700 Utilities expense 11,400 Repairs expense 8,850 Depreciation expense—equipment 4,500 Insurance expense 3,000 Supplies expense 2,250 Depreciation expense—building 9,000 Miscellaneous expense 4,350 Total expenses 233,050 Net income $169,450 BEACON SIGNALS COMPANY Statement of Owner’s Equity For the Year Ended December 31, 2019 Sarah Colin capital, January 1, 2019 $238,100 Net income for the year $169,450 Less withdrawals 10,000 Increase in owner’s equity 159,450 Sarah Colin , capital, December 31, 2019 $397,550 BEACON SIGNALS COMPANY Balance Sheet December 31, 2019 Assets Liabilities Current assets: Current liabilities: Cash $             13,000 Accounts payable $            15,700 Accounts receivable                 53,000 Salaries and wages payable                  4,900 Prepaid insurance                    1,200 Unearned rent                      800 Supplies                       750 Total liabilities $            21,400 Total current assets $            67,950 Property, plant, and equipment: Land $             98,000 Building $         500,000 Owner’s Equity Less accumulated depreciation              264,300               235,700 Sarah Colin, capital              397,550 Equipment $         121,900 Less accumulated depreciation              104,600                 17,300 Total property, plant, and equipment              351,000 Total assets $          418,950 Total liabilities and owner’s equity $         418,950 2019 Closing Entries Deceber 31 Fees Earned 401,200 Rent Revenue 1,300 Income Summary 402,500 31 Income Summary 233,050 Salaries and Wages Expense 168,000 Advertising Expense 21,700 Utilities Expense 11,400 Repairs Expense 9,000 Depreciation Expense—Equipment 8,850 Insurance Expense 4,500 Supplies Expense 3,000 Depreciation Expense—Building 2,250 Miscellaneous Expense 4,350 31 Income Summary 169,450 Sarah Colin, Capital 169,450 31 Sarah Colin, Capital 10,000 Sarah Colin, Drawing 10,000 BEACON SIGNALS COMPANY Post-Closing Trial Balance December 31, 2019 Debit Credit Balances Balances Cash 13,000 Accounts Receivable 53,000 Prepaid Insurance 1,200 Supplies 750 Land 98,000 Building 500,000 Accumulated Depreciation—Building 264,300 Equipment 121,900 Accumulated Depreciation—Equipment 104,600 Accounts Payable 15,700 Salaries and Wages Payable 4,900 Unearned Rent 800 Sarah Colin, Capital 397,550 787,850 787,850