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marsteller properties inc owns apartments that it rents to university students at de 4239018

Marsteller Properties, Inc., owns apartments that it rents to university students. At December 31, 2009, the following unadjusted account balances were available:Cash ………………… $ 4,600Rent Receivable ……………. 32,500Supplies ……………….. 4,700Prepaid Insurance …………….. 60,000Buildings ………………. 4,560,000Accumulated Depreciation, Buildings ……. 1,015,000Land ……………….. 274,000Other Assets …………….. 26,100Accounts Payable …………… 57,300Mortgage Payable (due in 2011) ………. 2,000,000Common Stock ……………. 1,500,000Retained Earnings, 12/31/2008 ………. 39,200Rent Revenue ……………… 660,000Maintenance Expense …………… 73,200Rent Expense ……………… 58,700Wages Expense ……………. 84,300Utilities Expense ……………. 3,400Interest Expense ……………. 90,000The following information is available for adjusting entries:a. An analysis of apartment rental contracts indicates that $3,800 of apartment rent is unbilled and unrecorded at year-end.b. A physical count of supplies reveals that $1,400 of supplies are on hand at December 31, 2009.c. Annual depreciation on the buildings is $204,250d. An examination of insurance policies indicates that $12,000 of the prepaid insurance applies to coverage for 2009.e. Six months’ interest at 9 percent is unrecorded and unpaid on the mortgage payable.f. Wages in the amount of $6,100 are unpaid and unrecorded at December 31.g. Utilities costs of $300 are unrecorded and unpaid at December 31.h. Income taxes, 15 percent of income before taxes, is unrecorded and unpaid atDecember 31.Required:1. Prepare a worksheet for Marsteller Properties, Inc.2. Prepare an income statement, a statement of changes in retained earnings, and a classified balance sheet for Marsteller Properties, Inc.3. Prepare the closing entries.View Solution:
Marsteller Properties Inc owns apartments that it rents to un

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