P429A The trial balance of Road Runner Internet Inc.

at August 31, 2009, and the data for the

monthendadjustmentsfollow:
Road RunnerInternet Inc.
TrialBalance
August31,2009

Balance
Debit Credit
Cash
3,000
Accountsreceivable 6,500
Prepaidrent 1,200
Supplies 900
Equipment35,300
Accumulated depreciation
12,800
Accountspayable
4,200
SalaryPayable
Unearnedservice revenue
8,900
Commonstock
5,000
Retainedearnings
5,400
Dividends 4,800
Servicerevenue
27,300
Salaryexpense 2,100
Rentexpense 9,800
Depreciationexpense
Suppliesexpense
Total 63,600 63,600
Accounttitle

Adjustmentdata:
a)UnearnedservicerevenuestillunearnedatAugust31,$6,500.
b)PrepaidrentstillinforceatAugust31,$1000.
c)Suppliesusedduringthismonth,$500.
d)Depreciationforthemonth,$300.
e)AccruedsalaryexpenseatAugust31,$400.
Requirements
1.OpentheaccountslistedinthetrialbalanceandinserttheirAugust31unadjustedbalances.
AlsoopentheincomeSummaryaccount.Usefourcolumnaccounts.Datethebalancesofthe
followingaccountsasofAugust1:Prepaidrent,Supplies,Equipment,Accumulateddepreciation,
Unearnedservicerevenue,andretainedearnings.
2.EnterthetrialbalanceonaworksheetandcompletetheworksheetofRoadRunnerInternet
Inc.forthemonthendedAugust31,2009.
3.Preparetheincomestatement,thestatementofretainedearnings,andtheclassifiedbalance
sheetinreportform.
4.Usingtheworksheetdatathatyouprepare,journalizeandposttheadjustingandclosingentries.
Usedatesandshowtheendingbalanceofeachaccount.
5.Prepareapostclosingtrialbalance.
Requirement1:
Requirement1:


ASSETS

Cash
3,000

LIABILITIES

STOCKHOLDERS'EQUITY

Accountspayable

Commonstock
4,200

Accountsreceivable
6,500

Salarypayable

Prepaidrent
1,200

Unearnedservicerevenue

Supplies
900

REVENUE

5,000

Retainedearnings
0

8,900

5,400

Dividens
4,800

EXPENSES

Servicerevenue
27,300

Salaryexpense
2,100

Equipment
35,300
Rentexpense
9,800
Accumulateddepreciation
12800
Depreciationexpense
0

Suppliesexpense
0

Requirement2:
RoadRunnerInternetInc.
Accountingworksheet
August31,2009
Accounttitle TrialbalanceAdjustments
Cash

Adjustedtrial IncomeBalancesheet
balancestatement

Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
3,000
3,000
3,000
Accountsreceivable6,5006,500 6,500
Prepaidrent1,200
(b) 200 1,000
1,000
Supplies 900
(c)500400
400
Equipment 35,300
35,300
35,300
Accumulateddepreciation12,800(d) 30013,10013,100
Accountspayable
4,200
4,200
4,200
SalaryPayable
400
400
(e) 400
Unearnedservicerevenue 8,900(a) 2,400 6,500 6,500
Commonstock 5,0005,000 5,000
Retainedearnings
5,400
5,400
5,400
Dividends 4,8004,800 4,800
Servicerevenue
27,300
(a) 2,400
29,700
29,700
Salaryexpense 2,100(e) 400 2,500 2,500
Rentexpense9,800
(b) 200
10,000
10,000
Depreciationexpense(d) 300300300
Suppliesexpense
(c)500
500
500
Total63,600 63,600 3,800 3,800 64,300 64,300 13,300 29,700 51,000 34,600
Netincome
16,400
16,400
29,700 29,700 51,000 51,000

Requirement3:
RoadRunnerInternet,Inc.
Incomestatement
MonthendedAugust31,2009
Revenue
Servicerevenue
Expenses
Salaryexpense
Rentexpense
Depreciation expense
Suppliesexpense
TotalExpense
NetIncome

29,700

2,500
10,000
300
500
13,300
16,400

RoadRunnerInternet,Inc.
Statementofretainedearnings
MonthendedAugust31,2009
Retainedearnings,August31,2009
Add:netincomeforAugust
Less:dividends
Retainedearnings,August31,2009

5,400
16,400
4,800
17,000

RoadRunnerInternet,Inc.
BalanceSheet
MonthendedAugust31,2009
Assets
Currentassets
Cash
Accountsreceivable
Prepaidrent
Supplies
Totalcurrentassets
Plantassets
Equipment
Depreciation
Totalplantassets
Totalassets

3000
6500
1000
400
10900

35300
(13100)
22200
33100

Liabilities
Currentliabilities
Accountspayable
Salarypayable
Unearnedrevenue
Totalliabilities

4200
400
6500
11100

Stockholders'equity
Commonstock
Retainedearnings
Totalstockholders'equity

5000
17000
22000

Totalliabilitiesandstockholders' equity

33100