Following are the 123117 unadjusted and adjusted trial balan

Following are the 12/31/17 unadjusted and adjusted trial balances for HW Co.
	HW Co.
	Unadjusted and Adjusted Trial Balances
	December 31, 2017
			Unadjusted	Adjusted
			DR	CR	DR	CR
	Cash	$16,000		$16,000
	Accounts Receivable	44,000		51,800
	Allowance for Doubtful Accounts		125		1,680
	Supplies	17,500		6,800
	Prepaid Insurance	6,700		5,100
	Equipment	185,000		185,000
	Accumulated Depreciation—Equipment		$58,000		$69,700
	Accounts Payable		11,000		11,000
	Interest Payable				300
	Salaries and Wages Payable		-		2,600
	Notes Payable		10,000		10,000
	Unearned Service Revenue		12,000		9,200
	Common Stock		20,000		20,000
	Retained Earnings		65,575		65,575
	Service Revenue		117,200		127,800
	Salaries and Wages Expense	16,000		18,600
	Insurance Expense			1,600
	Interest Expense	700		1,000
	Depreciation Expense			11,700
	Bad Debt Expense			1,555
	Supplies Expense			10,700
	Rent Expense	8,000		8,000
			$293,900	$293,900	$317,855	$317,855
Instructions
(a)	Journalize the annual adjusting entries that were made. (Omit explanations.) The first
	entry has been prepared for you.
Dec					Debit	Credit
31	Accounts Receivable				7,800
		Service Revenue				7,800
31
31
31
31
31
31
31
						-
(b)	Prepare an income statement and a statement of retained earnings for the year ending December 31, 2017, and an unclassified balance sheet at December 31.
	All expenses and liabilities should be placed in descending size order.
	HW Co.
	Income Statement
	For the Year Ended December 31, 2017
	Revenues
	Expenses
	HW Co.
	Statement of Retained Earnings
	For the Year Ended December 31, 2017
	HW Co.
	Balance Sheet
	December 31, 2017
	Assets
	Liabilities and Stockholders’ Equity

Following are the 12/31/17 unadjusted and adjusted trial balances for HW Co.
	HW Co.
	Unadjusted and Adjusted Trial Balances
	December 31, 2017
			Unadjusted	Adjusted
			DR	CR	DR	CR
	Cash	$16,000		$16,000
	Accounts Receivable	44,000		51,800
	Allowance for Doubtful Accounts		125		1,680
	Supplies	17,500		6,800
	Prepaid Insurance	6,700		5,100
	Equipment	185,000		185,000
	Accumulated Depreciation—Equipment		$58,000		$69,700
	Accounts Payable		11,000		11,000
	Interest Payable				300
	Salaries and Wages Payable		-		2,600
	Notes Payable		10,000		10,000
	Unearned Service Revenue		12,000		9,200
	Common Stock		20,000		20,000
	Retained Earnings		65,575		65,575
	Service Revenue		117,200		127,800
	Salaries and Wages Expense	16,000		18,600
	Insurance Expense			1,600
	Interest Expense	700		1,000
	Depreciation Expense			11,700
	Bad Debt Expense			1,555
	Supplies Expense			10,700
	Rent Expense	8,000		8,000
			$293,900	$293,900	$317,855	$317,855
Instructions
(a)	Journalize the annual adjusting entries that were made. (Omit explanations.) The first
	entry has been prepared for you.
Dec					Debit	Credit
31	Accounts Receivable				7,800
		Service Revenue				7,800
31
31
31
31
31
31
31
						-
(b)	Prepare an income statement and a statement of retained earnings for the year ending December 31, 2017, and an unclassified balance sheet at December 31.
	All expenses and liabilities should be placed in descending size order.
	HW Co.
	Income Statement
	For the Year Ended December 31, 2017
	Revenues
	Expenses
	HW Co.
	Statement of Retained Earnings
	For the Year Ended December 31, 2017
	HW Co.
	Balance Sheet
	December 31, 2017
	Assets
	Liabilities and Stockholders’ Equity

Solution

Jounral:

Income statement:

Account	Debit	Credit
Supplies expense	10,700
Supplies		10,700
Insurance expense	1,600
Prepaid insurance		1,600
Depreciation Expense	11,700
Accumulated Depreciation—Equipment		11,700
Salaries and Wages Expense	2,600
Salaries and Wages Payable		2,600
Interest Expense	300
Interest Payable		300
Bad Debt Expense	1,555
Allowance for Doubtful Accounts		1,555
Accounts Receivable	7,800
Unearned service revenue	2,800
Service revenue		10,600