Solution:

Elias Real Estate Appraisal

Balance Sheet
June 30, 2018
Assets
Current Assets:
Cash $4,400
Accounts Receivable 5,500
Office Supplies 2,300
Prepaid Insurance 2,600

Total Current Assets $14,800

Plant Assets:
Building 76,000
Less: Accumulated Depreciation—Building (25,500) 50,500
Land 12,600
Total Plant Assets 63,100
Total Assets $77,900

Liabilities
Current Liabilities:
Accounts Payable $19,000
Interest Payable 8,700
Salaries Payable 1,600
Unearned Revenue 10,900

Total Current
$40,200
Liabilities
Long-term Liabilities:
Notes Payable 35,000
Total Liabilities 75,200
Owner's Equity
Elias, Capital 2,700
Total Liabilities and
$77,900
Owner's Equity
 Date Accounts and Explanation Debit Credit
Jun. 30 Service Revenue 47,800
Clos. (1) Income Summary 47,800

To close revenue.

Date Accounts and Explanation Debit Credit

Jun. 30 Income Summary 56,400
Clos. (2) Insurance Expense 4,700
Salaries Expense 32,900
Supplies Expense 100
Interest Expense 8,700
Utilities Expense 2,400
Depreciation Expense—Building 7,600
To close expenses.

Date Accounts and Explanation Debit Credit

Jun. 30 Elias, Capital 8,600
Clos. (3) Income Summary 8,600

To close Income Summary.

Date Accounts and Explanation Debit Credit

Jun. 30 Elias, Capital 26,700
Clos. (4) Elias, Withdrawals 26,700

To close withdrawals.