Book 2 - Chapter 14

LG	14-1, continued
	Adjustments information:
	The prepaid insurance is $150 per month for nine months (1,800/12) × 9 = 1,350. The interest expense is $300 per month, but 11 months of it is already on the trial balance (Interest Expense), so only a $300 accrual is needed for the last month. Remember: ALWAYS check the trial balance before making an adjustment!

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Income Statement

For the Year Ended December 31, 2008

Revenues

	Fees earned		$112,200
Expenses
	Salaries expense	57,800
	Rent expense	36,000
	Depreciation expense	7,750
	Utilities expense	5,200
	Printing supplies expense	4,800
	Interest expense	3,600
	Travel expense	3,250
	Insurance expense	1,350
	Office supplies expense	1,300
	Total expenses		121,050
Net: Loss

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Balance Sheet
December 31, 2008

Assets			Liabilities
Cash		$18,300	Accounts payable	$1,400
Accounts receivable		4,200	Salaries payable	500
Printing supplies		200	Interest payable	300
Prepaid insurance		450	Notes payable	36,000
Office equipment	$7,500		Total liabilities	38,200
Less: Accumulated depreciation	1,750		Owner’s Equity
		5,750	Dave St. Jean, Capital	4,700
Printing/copying equipment	$35,500
Less: Accumulated depreciation	21,500	14,000
Total assets			Total liabilities and owner’s equity

Learning Goal 14, continued

SOLUTIONS

Learning Goal 14: Use the Completed Worksheet

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