financeLawn Pride, Inc., provides lawn-mowing services to both commercial and residential customers. The company performs adjusting entries on a monthly basis, whereas closing entries are prepared annually on December 31. An adjusted trial balance dated December 31, 2011, follows.
$$
\begin{array}{|cc}
\hspace{3cm} & \text{LAWN PRIDE, INC.
ADJUSTED TRIAL BALANCE}\\
\hspace{3cm} & \text{DECEMBER 31. 2011}||
\hspace{4cm} &\hspace{2cm} & \textbf{Debits} & \textbf{Credits}\\
\text { Cash } & \cdots \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots\cdots& \$ 58,525 & \\
\text { Accounts receivable } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 4,800& \\
\text {Unexpired insurance } &\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 8,000 & \\
\text {Prepaid rent } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 3,000 & \\
\text { Supplies } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 1,075& \\
\text { Trucks} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 150,000& \\
\text { Accumulated depreciation: trucks } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & &\$120,000 \\
\text { Mowing equipment } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 20,000& \\
\text {Accumulated depreciation: mowing equipment } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & & 12,000\\
\text { Accounts payable} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & & 1,500 \\
\text { Notes payable } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots& & 50,000\\
\text { Salary payable } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& &900 \\
\text { Interest payable } & \cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& & 150\\
\text {Income taxes payable} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & &1,050 \\
\text {Unearned mowing revenue} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & & 900\\
\text { Capital stock } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & & 20,000 \\
\text {Retained earnings } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & & 30,000\\
\text { Dividends } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots &5,000 & \\
\text { Mowing revenue earned } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & & 170,000\\
\text {Insurance expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 2,400 & \\
\text { Office rent expense} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 36,000 & \\
\text { Supplies expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots& & 5,200 \\
\text { Salary expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& 60,000& \\
\text { Depreciation expense: trucks } & \cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& 30,000 & \\
\text {Depreciation expense: mowing equipment} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 4,000 & \\
\text { Repair and maintenance expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 3,000 & \\
\text {Fuel expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 1,500 &\\
\text { Miscellaneous expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& 5,000& \\
\text { Interest expense} & \cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& 3,000 & \\
\text {Income taxes expense} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 6,000 & \\
\hspace{4cm} &\hspace{2cm} & \$406,500 & \$406,500\\
\end{array}
$$
Instructions\
d. Using the financial statements prepared in part a, briefly evaluate the company's profitability and liquidity. financeThe information below was taken from the job cost sheets of Bates Company.
| Job Number | Manufacturing Costs as of June 30 | Manufacturing Costs in July |
| :---: | :---: | :---: |
| 101 | $4,200 | |
| 102 | 3,240 | |
| 103 | 900 |$2,000 |
| 104 | 2,250 | 4,000 |
| 105 | | 6,000 |
| 106 | | 3,700 |
During July, jobs no. 103 and 104 were completed, and jobs no. 101, 102, and 104 were delivered to customers. Jobs no. 105 and 106 are still in process at July 31 . From this information, compute the following:
d. The work in process inventory at July 31 . 1st EditionMcGraw-Hill1,670 solutions

1st EditionMcGraw-Hill1,670 solutions

2nd EditionJackson J. Spielvogel1,205 solutions

2nd EditionJackson J. Spielvogel1,205 solutions