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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.

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