P4-25A The trial balance of Fugazy Investment Advisers at December 31, 2012, follows:

The trial balance of Fugazy Investment Advisers at December 31, 2012, follows:

 

FUGAZY INVESTMENT ADVISERS Trial Balance December 31, 2012 Account Debit Credit

Cash 32,000 Accounts receivable 46,000 Supplies 3,000 Equipment 25,000 Accumulated depreciation 11,000 Accounts payable 15,000 Salary payable Unearned service revenue 2,000Note payable, long-term 39,000 Fugazy, capital 38,000Fugazy, drawing 50,000 Service revenue 97,000Salary expense 32,000 Supplies expense Depreciation expense Interest expense 3,000Rent expense 9,000Insurance expense 2,000Total $202,000 $202,000

Adjustment data at December 31, 2012:

a.   Unearned service revenue earned during the year, $500.

b.   Supplies on hand, $1,000.

c.   Depreciation for the year, $6,000.

d.  Accrued salary expense, $1,000.

e.  Accrued service revenue, $4,000.

 

Requirements:

1. Enter the account data in the Trial Balance columns of a worksheet, and complete the worksheet through the Adjusted Trial Balance. Key each adjusting entry by the letter corresponding to the data given. Leave a blank line under Service revenue.

2. Prepare the income statement, the statement of owner’s equity, and the classified balance sheet in account format.

3. Prepare closing journal entries from the worksheet.

4. Did the company have a good or a bad year during 2012? Give the reason for your answer.