flint inc operates a cable television system at december 31 239662

Flint, Inc., operates a cable television system. At December 31, 2009, the following unadjusted account balances were available:

Cash ………………………………………………………. $ 2,000

Accounts Receivable ……………………………………… 89,000

Office Supplies ……………………………………………. 5,000

Land ……………………………………………………….$ 37,000

Building …………………………………………………… 209,000

Accumulated Depreciation, Building ……………………… 40,000

Equipment …………………………………………………. 794,000

Accumulated Depreciation, Equipment ……………………. 262,000

Other Assets ………………………………………………. 19,700

Accounts Payable …………………………………………. 29,500

Notes Payable (due in 2013) ……………………………… 250,000

Common Stock …………………………………………… 300,000

Retained Earnings, 12/31/2008 …………………………… 14,700

Dividends ………………………………………………… 28,000

Service Revenue ………………………………………….. 985,000

Subscription Expense …………………………………….. 398,000

Telephone Expense ………………………………………. 10,500

Utilities Expense …………………………………………. 34,000

Wages Expense …………………………………………… 196,000

Miscellaneous Expense …………………………………… 44,000

Interest Expense ………………………………………….. 15,000

The following data are available for adjusting entries:

a. At year-end $1,500 of office supplies remain unused.

b. Annual depreciation on the building is $20,000.

c. Annual depreciation on the equipment is $150,000.

d. The interest rate on the note is 8 percent. Four months’ interest is unpaid and unrecorded at December 31, 2009.

e. At December 31, 2009, service revenue of $94,000 has been earned but is unbilled and unrecorded. f. Utility bills of $2,800 are unpaid and unrecorded at December 31, 2009.

g. The income tax rate is 25 percent.

Required:

1. Prepare a worksheet for Flint.

2. Prepare an income statement, a statement of changes in retained earnings, and a classified balance sheet for Flint.

3. Prepare the closing entries.

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