ABC Corporation was incorporated and began operations on Jan

ABC Corporation was incorporated and began operations on Jan 1, 2017 with $50,000 cash and $50,000 of share capital issued.

1.Prepare an income statement (single-step), statement of changes in equity, and balance sheet.

2.Prepare and post the closing entries.

3.Prepare an after-closing trial balance.

Please Show Steps

Adjusted Trial Balance 31-Jan Account Debit Credit 13200 5000 Interest Receiveable 100 Truck 9 Accumulated Dep, Equipment 100 55000 Unearned Rent Revenue 50000 10000 291.67 111,802111,802

Solution

Closing entry:

Post closing TB:

Income statement
Service revenue		5000
Rent revenue		300
Interest revenue		100
Total revenue		5400
Insurance expense		100
Salaries		1560
Supplies expense		500
Dep expense		291.67
Rent expense		500
Total expenses		2951.67
net income		2448.33