P4-28A

Preparing financial statements including a classified balance sheet in report form, preparing and posting closing entries, and preparing a post-closing trial balance.

The adjusted trail balance of Elmo Real Estate Appraisal at June 30, 2016, follows:

Requirements:

1. Prepare the company’s income statement for the year ended June 30, 2016.

2. Prepare the company’s statement of owner’s equity for the year ended June 30, 2016. (Assume that there were no contributions made by the owner during this year)

3. Prepare the company’s classifies balance sheet in report form at June 30, 2016.

4. Journalize the closing entries.

5. Open the T-Accounts using the balances from the adjusted trail balance and post the closing entries to the T-Accounts.

6. Prepare the company’s post-closing trail balance at June 30, 2016.