WORKSHEET

Lazlo Service Co., which specializes in appliance repair services, is owned and operated by George Oop.
Lazlo Service Co.’s accounting clerk prepared the following trial balance at December 31, 2006 :

Lazlo Service Co.

Trial Balance
December 31, 2006

Debit Credit
Cash $ 24,100
Accounts Receivable 20,600
Prepaid Insurance 6,000
Supplies 1,450
Land 100,000
Building 181,500
Accumulated Depreciation – Building $ 95,700

Equipment 80,100
Accumulated Depreciation – Equipment 35,300
Accounts Payable 7,500
Unearned Rent 7,200
Share Capital-Ordinary 157,000
Retained Earning 20,000
Dividend 5,000
Service Revenue 257,200
Salaries and Wages Expense 101,800
Utilities Expense 28,200
Advertising Expense 15,000
Repair Expense 12,100
Miscellaneous Expense 4,050
$579,900 $579,900

The data needed to determine year-end adjustments are as follows:

a. Depreciation of building for the year, $6,300
b. Depreciation of equipment for the year, $2,400
c. Accrued salaries and wages at December 31, $1,720
d. Unexpired insurance at December 31, $3,500
e. Service Revenue but unbilled on December 31, $4,350
f. Supplies on hand at December 31, $375
g. Rent unearned at December 31, $2,800

Instruction :
1. Journalize the adjusting entries. Add accounts as needed.
2. Enter the trial balance on a ten – column work sheet and complete the work sheet.
3. Prepare an Statement of Financial Position as December 31, 2006.
4. Journalize the closing entries