1. Mini-case Acme Corp. was formed on July 1 of the current year. The following occurred during the year: t Common stock is issued for $50,000. t $200/month rent is paid for 1 year in advance on July 1. t Wages are paid in cash during the period totaling $8,000. Accrued wages at year-end are $1,200. t Fees earned during the period are billed to clients totaling $35,000. t Supplies are purchased on account for $2,000. Assume that all of the supplies were used up at the end of year. t $22,000 is collected from clients previously billed. t Suppliers are paid $1,800 on account. t $500 in dividends are declared and paid. t $250 in utilities are paid during the year. Required: Journalize these transactions, post them to T-accounts, prepare the adjusted trial balance, prepare all four financial statements, prepare closing entries, and prepare the post-closing trial balance.

2. Mini-case 2. Prepaid Rent2,400 Cash2,400 1. Cash50,000 Common Stock50,000 3. Salaries Expenses8,000 Cash8,000 4. A/R35,000 Fee Revenue35,000

3. 5. Office Supplies2,000 A/P2,000 6. Cash22,000 A/R22,000 7. Accounts Payable1,800 Cash1,800 8. Dividends500 Cash500 9. Utility Expense250 Cash250

4. Adjusting Entries 1 Rent Expense1,200 Prepaid rent1,200 2. Supplies expense2,000 supplies2,000 3. Salary expense1,200 Salary Payables1,200

5. CashAccounts receivable BB 0 (1) 50,000(2) 2,400(4) 35,000 (6) 22,000 (3) 8,000$13,000 (6) 22,000(7) 10,000 (8) 6,000 (9) 250 $59050

6. Prepaid rent Supplies (2) 2,400(A1) 1,200(5) 2,000(A2)2,000 $1,200 $ 0 Accounts payable Salaries Payable BB 0(A3)1200 (7) 1,800 (5)2,000$1200 $200

7. Common StockService (revenue) Supplies expense BB 0(4) 35,000A3.2000 1. 50,000$35,000$2000 C2 2000 $50,000C135000 Utility expense Salary expense Rent expense 9. 250(3)8000A1 1200 $250 C2 250 (A2) 1200 C2 9200 $1200 C2 1200

8. Dividends (8) 250 $250 C3 250

9. Amer Company Income Statement For the Year Ended December 31 Revenue Sales$35000 Expenses Rent Expense $ 1200 Rent Expense $ 1200 Utility Expense 250 Utility Expense 250 Salary Expense 9200 Salary Expense 9200 Supplies expenses 2000 12650 Supplies expenses 2000 12650 Net income $ 22350

10. t Amer Coporation  For the Year Ended December 31 Beginning contributed capital -0- Contributions during the year 50000 Ending contributed capital 50000 Beginning retained earning -0- Net Income for the year 22350 Dividends (500) Ending Retained earning $21,850 Total shareholder’s equity $71850

11. Tom’s Wear Balance Sheet As of 2/28/01 Assets Liabilities + Shareholder’s Equity Assets Liabilities + Shareholder’s Equity Cash$59,050 Accounts payable 200 Prepaid Rent 1200 Salaries Payables 1200 A/R 13,000 Common Stock 50,000 Retained earnings 21850 Retained earnings 21850 Total assets$ 73,250 Total liabilities + Equity $ 73,250

12. Amer. Statement of Cash Flows For the Year ended December 31 Cash from operating activities Cash from customers$ 22000 Cash paid for rent (2400) Cash paid for Salaries (8000) Cash paid for supplies (1800) Cash paid for supplies (1800) Cash paid for Utility (250) Total cash from operations$9550 Cash from investing activities -0- Cash from financing activities Cash from Owner’s Contribution 50000 Cash from Owner’s Contribution 50000 Dividends (500) Total Cash from Financing49500 Net Increase in Cash $ 59050 Net Increase in Cash $ 59050 Cash, Beginning Balance 0 Cash, ending Balance59050

13. 1. Fee Revenues35,000 Retained Earnings35,000 2..Retained Earnings12,650 Rent Expenses1,200 Supplies Expense2,000 Salaries Expense9,200 Utility Expense250 3. Retained Earnings500 Dividends500 Closing Entries

14. Post-closing Trial Balance Debit Credit Cash 59,050 Accounts Receivable 13,000 Prepaid Rent 1,200 Accounts Payables200 Salaries payable1200 Common Stock50000 Retained Earnings21850 Total 73,25073250