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    Lanza Company

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    E4-6 The adjusted trial balance of Lanza Company at the end of its fiscal year.
    E4-7 Prepare an income statement and a retained earnings statement for the year. There were no issuances of stock during the year.
    Prepare a classified balance sheet at July 31.

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    LANZA COMPANY
    Adjusted Trial Balance
    July 31, 2006

    No. Account Titles Debits Credits

    101 Cash 14,840
    112 Accounts Receivable 8,780
    157 Equipment 15,900
    167 Accumulated Depreciation 5,400
    201 Accounts Payable 4,220
    208 Unearned Rent Revenue 1,800
    311 Common Stock 20,000
    320 Retained Earnings 25,200
    332 Dividends 16,000
    404 Commission Revenue 67,000
    429 Rent Revenue 6,500
    711 Depreciation Expense 4,000
    720 Salaries Expense 55,700
    732 Utilities Expense 14,900
    Totals 130,120 130,120

    E4-6 (a) Prepare the Closing Entries

    July 31, 2006 320 Retained Earnings 16,000
    332 Dividends 16,000

    July 31, 2006 404 Commission Revenue 67,000
    350 Income Summary 67,000

    July 31, 2006 429 Rent Revenue 6,500 ...

    Solution Summary

    This solution is comprised of a detailed explanation to prepare the journal entries from the adjusted trial balance of Lanza Company at the end of its fiscal year, prepare an income statement and a retained earnings statement for the year, and prepare a classified balance sheet at July 31.

    $2.19

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