the adjusted trial balance columns of the worksheet for rachel company inc are as fo 581574

The adjusted trial balance columns of the worksheet for Rachel Company Inc. are as follows.

RACHEL COMPANY INC.

Worksheet

For the Year Ended December 31, 2011

Account

No.

Account Titles

Dr.

Cr.

101

Cash

8,100

112

Accounts Receivable

10,800

126

Supplies

1,500

130

Prepaid Insurance

2,000

151

Office Equipment

24,000

152

Accumulated Depreciation—Office Equipment

5,600

200

Notes Payable

15,000

201

Accounts Payable

6,100

212

Salaries Payable

2,400

230

Interest Payable

600

311

Common Stock

10,000

320

Retained Earnings

5,800

332

Dividends

7,000

400

Service Revenue

61,000

610

Advertising Expense

8,400

631

Supplies Expense

4,000

711

Depreciation Expense

5,600

722

Insurance Expense

3,500

726

Salaries Expense

31,000

905

Interest Expense

600

Totals

106,500

106,500

Instructions

(a) Complete the worksheet by extending the balances to the financial statement columns.

(b) Prepare an income statement, a retained earnings statement, and a classified balance sheet.(Note: $9,000 of the notes payable become due in 2012.)

(c) Prepare the closing entries. Use J14 for the journal page.

(d) Post the closing entries. Use the three column form of account. Income Summary is No. 350.

(e) Prepare a post closing trial balance.