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Prepare the income statement, statement of owner's equity, and balance sheet

On April 1, 2018, Jacob Sherman opened a real estate office called Sherman Realty. Consider the following for Sherman Realty Balance Sheet Adjustments Debit Credit Income Statement Debit Credit Debit Credit Adjusted Trial Balance Debit Credit 19,135 7,500 . 2,700 900 1,200 Sherman Realty Worksheet For the Month Ended April 30, 201X Trial Balance Account Titles Debit Credit Cash 19,135 Accounts Receivable 7,500 Prepaid Rent 3,600 Office Supplies 1,350 Office Equipment 9,000 Automobile 14,000 Accounts Payable 15,150 Jacob Sherman, Capital 23,0001 Jacob Sherman, Withdrawals 3,000 Commissions Eamed 22.000 Salari 1,100 Gas Expense 115 Repairs Expense 450 Telephone Expense 200 700 Advertising Expense 60,150 60,150 Totals 19,135 7,500 2,700 150 9,000 14,000 b 150 9,000 14,000 15,150 23,000 15,150 23,000 3,000 3,000 22.000 22,000 1,100 115 4501 200 1,100 115 450 200 700 700 Rent Expense a. b. 900 1,200 170 900 1,200 170 900 1,200 170 C Office Supplies Expense Dep. Expense, Office Equip. Acc. Dep., Office Equip. Dep. Expense, Automobile Acc. Dep., Automobile C 170 170 170 d. 300 300 300 300 300 d 300 60,620 2,570 2.570 60,620 Totals 22,000 55,485 5,135 16,865 38,620 16,865 55,485 Net income Totals 22,000 22,000 55,485 Sherman Realty Chart of Accounts Assets Revenue 111 Cash 411 Commissions Earned 112 Accounts Receivable 114 Prepaid Rent 115 Office Supplies 121 Office Equipment 122 Accumulated Depreciation, Office Equipment 123 Automobile 124 Accumulated Depreciation, Automobile Liabilities 211 Accounts Payable 212 Salaries Payable Owner's Equity 311 Jacob Sherman, Capital 312 Jacob Sherman, Withdrawals 313 Income Summary Expenses 511 Rent Expense 512 Salaries Expense 513 Gas Expense 514 Repairs Expense 515 Telephone Expense 516 Advertising Expense 517 Office Supplies Expense 518 Depreciation Expense, Office Equipment 519 Depreciation Expense, Automobile 524 Miscellaneous Expense Required Work - X 1. Prepare a April income statement, statement of owner's equity, and balance sheet. 2. From the worksheet, journalize and post adjusting and closing entries. 3. Prepare a post-closing trial balance. Requirement 1. Prepare a April income statement, statement of owner's equity, and balance sheet. Start by preparing the income statement. (If a box is not used in the statement, leave the box empty, do not select a label or enter a zero.) Sherman Realty Income Statement For the Month Ended April 30, 2018 Revenue: Operating Expense: Total Operating Expenses Net income Prepare a statement of owner's equity. (April is the first month of operation and began with a "0" balance. The capital balance as reported in the unadjusted trial balance is the investment by the owner into the business, made on April 1. Complete all answer boxes. Enter a "O" for any zero balances. Use a minus sign or parentheses for a decrease in capital.) Sherman Realty Statement of Owner's Equity For the Month Ended April 30, 201X Jacob Sherman, Capital, April 1, 201X Total Investments Less: in Capital Prepare the balance sheet. Start with the asset portion of the statement and then complete the liabilities and owner's equity sections of the statement. (FO Sherman Realty Balance Sheet April 30, 2017 Assets Liabilities and Owner's Equity Liabilities Less: Owner's Equity Less: Total assets Total liabilities and owner's equity Requirement 2. From the worksheet, journalize and post adjusting and closing entries. Start by journalizing the adjusting entries, beginning with the rent adjustment. (Record debits first, then credits. Exclude explanations from journal entries.) a. One month's rent (of the four months prepaid on April 1) had expired. Journal Entry Date Account Titles PR Dr. Cr. 2017 Apr. b. An inventory shows $150 of office supplies remaining. Journal Entry Date Account Titles PR Dr. Cr. 2018 Apr. c. Depreciation on office equipment, $170. Journal Entry Date Account Titles PR Dr. Cr. 2018 Apr. d. Depreciation on automobile, $300 Journal Entry Date Account Titles PR Dr. Cr. 2018 Apr. Next, journalize closing entries for April. (Record debitsfirst, then credits. Exclude explanations from journal entries.) Begin by closing out the revenue account. Journal Entry Date Account Titles PR Dr. Cr. 2018 Apr. Close out the expense accounts. Journal Entry Account Titles Date PR Dr. Cr. 2018 Apr Close out Income Summary Journal Entry Date Account Titles PR Dr. Cr. 2018 Apr. Close out the Withdrawals account. Journal Entry Date Account Titles PR Dr. Cr. 2017 Apr. Post the adjusting and closing entries to the ledger. Sherman Realty's April transactions have been entered into the ledger accounts for you. (If more than one entry is required to post to anaccount, post the entries in the same order as the journal entries you prepared above. If the balance is zero after posting an entry, leave the balance columns blank. Do not enter a "0". For purposes of this problem, ignore posting references.) Review the adjusting and closing journal entries you prepared above. Review the adjusting and closing journal entries you prepared above. Cash Account No. 111 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2018 Apr. 1 14,000 14,000 1 3,600 900 4 6 6,500 8 25 15 550 20 3,000 10,400 9,500 16,000 15,975 15,425 12,425 20,425 20,335 19,885 19,335 19,135 21 8,000 221 90 24 4501 30 550 30 200 Accounts Receivable Account No. 112 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2017 Apr. 17 7,500 7,500 Prepaid Rent Account No. 114 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2017 Apr. 3,600 3,600 Office Supplies Post. Explanation Ref. Account No. 115 Balance Debit Credit Date Debit Credit 201X Apr. 4 900 900 1,350 5 450 Office Equipment Post. Account No. 121 Balance Debit Credit Date Explanation Ref. Debit Credit 2017 Apr. 9,000 9,000 Account No. 122 Balance Accum. Depreciation, Office Equipment Post. Date Explanation Ref. 2018 Debit Credit Debit Credit Apr. Automobile Account No. 123 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2017 Apr. 14,000 14,000 Accum. Depreciation, Automobile Account No. 124 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2017 Apr Accounts Payable Account No. 211 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2018 Apr. 1 14,0001 5 4501 14,000 14,450 15,150 30 700 Jacob Sherman, Capital Account No. 311 Balance Post. Ref. Date Explanation Debit Credit Debit Credit 2017 Apr. 23,000 23,000 Jacob Sherman, Withdrawals Account No. 312 Balance Post. Ref. Date Explanation Debit Credit Debit Credit 201X Apr. 20 3,000 3,000 Income Summary Account No. 313 Post. Balance Explanation Ref. Debit Credit Debit Credit Date 2018 Apr. Commissions Earned Account No. 411 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 201X Apr. 6 6,500 17 7,5001 8,0001 6,500 14,000 22,0001 21 Rent Expense Account No. 511 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 201X Apr. Salaries Expense Account No. 512 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2018 Apr. 15 5501 550 30 550 1,100 Account No. 513 Gas Expense Post. Explanation Ref. Balance Date Debit Credit Debit Credit 2017 Apr. 8 25 251 22 90 115 Repairs Expense Account No. 514 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2018 Apr. 24 450 450 Account No. 515 Telephone Expense Post. Explanation Ref. Balance Debit Credit Date Debit Credit 2018 Apr. 30 2001 200 Advertising Expense Post. Explanation Ref. Account No. 516 Balance Date Debit Credit Debit Credit 2018 Apr. 301 700 700 Office Supplies Expense Account No. 517 Balance Post. Ref. Date Explanation Debit Credit Debit Credit 2017 Apr. Account No. 518 Depreciation Expense, Office Equipment Post. Date Explanation Ref. Balance Debit Credit Debit Credit 2017 Apr. Depreciation Expense, Automobile Account No. 519 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2018 Apr. Requirement 3. Prepare a post-closing trial balance. Review the ledger you prepared above. Sherman Realty Post-Closing Trial Balance April 30, 2018 Account Debit Credit Totals

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