Gray Company

Worksheet
For the Year Ended December 31, 2019

Trial Balance Adjustments Adj Trial Balance

Debit Credit Debit Credit Debit
Cash 72,000 72,000
Accounts receivable 331,000 331,000
Prepaid insurance 48,000 b. 12,000 36,000
Supplies 125,000 c. 53,000 72,000
Land 170,000 170,000
Building 850,000 850,000
Acc Depr.-building 230,000 d. 15,000
Computer Equipment 620,000 620,000
Acc Depr.- computer equipment 106,000 e. 18,000
Notes payable 550,000
Accounts payable 143,000
Salaries payable f. 72,000
Interest payable a. 23,000
Utilities payable g. 9,000
Unearned Computer-Aided Design Revenue h. 30,000
Mortgage payable 470,000
Gray, Capital 310,000
Gray, Withdrawal 250,000 250,000
Computer-Aided Design Revenue 1,470,000 h. 30,000
Salaries expense 813,000 f. 72,000 885,000
Insurance expense b. 12,000 12,000
Supplies expense c. 53,000 53,000
Depreciation expense-building d. 15,000 15,000
Depreciation expense-computer equip e. 18,000 18,000
Utilities expense g. 9,000 9,000
Interest expense a. 23,000 23,000
Totals 3,279,000 3,279,000 232,000 232,000 3,416,000
Profit

Adjusting entries
a. Interest expense 23,000
Interest payable 23,000 R For the Year Ended Dece

b. Insurance expense 12,000

 Prepaid insurance 12,000 Computer-Aided Design Revenue
Less Expenses:
c. Supplies expense 53,000 Salaries expense
Supplies 53,000 Insurance expense
Supplies expense
d. Depreciation expense-building 15,000 Depreciation expense-building
Acc depr-building 15,000 Depreciation expense-comput
Utilities expense
e. Depreciation expense-Comp. Equip 18,000 Interest expense
Acc depr - Com Equip 18,000 Total
Profit
f. Salaries expense 72,000
Salaries payable 72,000 R
Statement of Changes in
g. Utilities expense 9,000 For the Year Ended Dece
Utilities payable 9,000 R
Gray Capital Jan 1, 2019
h. Computer-Aided Design Revenue 30,000 Add: Profit
Unearned Computer-Aided Design Rev 30,000 R Total
Less Withdrawal
Gray Capital Dec. 31, 2019

8 pts adjusting entries

1 Work sheet trial balance total
1 Worksheet adjustment total
1 Worksheet adjusted trial balance total
1 Worksheet Profit of 425,000
1 Worksheet Balance sheet total
5 Income statement, Presentation
5 Statement of Changes in Equity
5 Balance sheet
28 points total
mber 31, 2019

Adj Trial Balance Income Statement Balance Sheet

Credit Debit Credit Debit Credit
72,000
331,000
36,000
72,000
170,000
850,000
245,000 245,000
620,000
124,000 124,000
550,000 550,000
143,000 143,000
72,000 72,000
23,000 23,000
9,000 9,000
30,000 30,000
470,000 470,000
310,000 310,000
250,000
1,440,000 ###
885,000
12,000
53,000
15,000
18,000
9,000
23,000
3,416,000 ### ### 2,401,000 1,976,000
425,000 425,000
### ### 2,401,000 2,401,000

Gray Company
Income Statement
For the Year Ended December 31, 2019 1 pt
r-Aided Design Revenue 1,440,000 1 pt

Salaries expense 885,000

Insurance expense 12,000
Supplies expense 53,000
Depreciation expense-building 15,000
Depreciation expense-computer equip 18,000
Utilities expense 9,000
Interest expense 23,000
1,015,000 1 pt
425,000 2 pts

Gray Company
Statement of Changes in Equity 1 pt
For the Year Ended December 31, 2019

ital Jan 1, 2019 310,000

425,000
735,000 1 pt
250,000 1 pt
ital Dec. 31, 2019 485,000 2 pts
 Gray Company Closing entries
Balance Sheet 1 pt 2019
December 31,, 2019 Dec 31

Assets
Current Assets
Cash 72,000
Accounts receivable 331,000
Prepaid insurance 36,000
Supplies 72,000
Total Current Assets 511,000 1 pt

Non-Current Assets
Land 170,000
Building 850,000
Acc Depr.-building 245,000 605,000

Computer Equipment 620,000

Acc Depr.- computer equipment 124,000 496,000
Total Non-current Assets 1,271,000 1 pt
Total Assets 1,782,000

Liabilities

Current Liabilities
Notes payable 550,000
Accounts payable 143,000
Salaries payable 72,000
Interest payable 23,000
Utilities payable 9,000
Unearned Computer-Aided Design Revenue 30,000
Total Current Liabilities 827,000 1 pt

Long-term Liability
Mortgage payable 470,000
Total Liabilities 1,297,000

Owner"s Equity
485,000
Total Liabilities and Owner's Equity 1,782,000 1 pt
Closing entries

Computer-Aided Design Revenue 1,440,000

Income Summary 1,440,000

Income Summary 1,015,000

Salaries expense 885,000
Insurance expense 12,000
Supplies expense 53,000
Depreciation expense-building 15,000
Depreciation expense-comp equip 18,000
Utilities expense 9,000
Interest expense 23,000

Income Summary 425,000

Gray, Capital 425,000

Gray, Capital 250,000

Gray Withdrawal 250,000
 Gray Company
Post-Closing Trial Balance
December 31, 2019

Cash 72,000
Accounts receivable 331,000
Prepaid insurance 36,000
Supplies 72,000
Land 170,000
Building 850,000
Acc Depr.-building 245,000
Computer Equipment 620,000
Acc Depr.- computer equipment 124,000
Notes payable 550,000
Accounts payable 143,000
Salaries payable 72,000
Interest payable 23,000
Utilities payable 9,000
Unearned Computer-Aided Design Revenue 30,000
Mortgage payable 470,000
Gray, Capital 485,000
2,151,000 2,151,000