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16. Legal fees incurred in successfully defending a patent suit should be capitalized when the patent has been Internally Purchased from Developed an Inventor (2 points) Yes Yes Yes No No Yes No No

Question 1 : Accounting Cycle Mike Brudu began operations on January 1, 2017. The trial balance columns for the Quarter Ended March 31, 2017 shown below: Dr. Cr. Cash 11,400 Accounts Receivable 5,620 1,050 Supplies Prepaid Insurance Equipment 2,400 30,000 10,000 12,350 Notes Payable Accounts Payable Owner's Capital Owner's Drawings 20,000 600 Service Revenue 13,620 Salaries and Wages Expense 2.200 Travel Expense 1,300 1,200 Rent Expense Miscellaneous Expense 200 55,970 55,970 Other data: 1. Supplies on hand total $480. 2. Depreciation is $800 per quarter. 3. Interest accrued on 6-month note payable, issued January 1, $300. 4. Insurance expires at the rate of $200 per month. 5. Services performed but unbilled at March 31 total $1,030.
Instructions (a) Prepare an income statement and owner's equity statement for the quarter and a classified balance sheet at March 31. M. Brudu did not make any additional investments in the business during the quarter ended March 31, 2017. (b) Journalize the adjusting entries. (c) Prepare adjusted trial balance (d) Journalize the closing entries (e) Prepare post-closing trial balance (1) Prepare the Income statement and owner's equity Statement and classified balance sheet at March 31.