FINAL ANSWERS Income statement and balance sheet versions A and C(1)

This preview shows page 1 - 5 out of 9 pages.

The preview shows page 3 - 5 out of 9 pages.
Income statement for the six month period ending December 31, 2015Services income500,000Dividend income from investments2,200less: expensesSalaries paid to owners(150,000)Wages paid to employees(120,000)Rent(20,000)Travel costs to customer locations(3,500)Book depreciation(7,000)Interest to banks(6,000)Interest to shareholder(6,000)Cleaning(1,200)Utilities(2,500)Website costs(3,500)Net income for the year182,500
Balance sheet at December 31, 2015This is Balance Sheet tCash13,500Accounts receivable52,500Investments31,000Equipment35,000less: accumulated depreciation(7,000)less: LiabilitiesAccounts payable- wages to employees(9,000)- rent(2,500)- interest to shareholder(6,000)Loans from shareholder(20,000)Loans from bank (guaranteed by owner)(20,000)Amounts received from customers in advance(15,000)Net assets52,500Equity50,000Retained earnings182,500less: distribution(180,000)Net equity52,500
to be used for Schedule L
Book to tax reconciliationBook incomeDebitCreditServices income500,000(52,500)15,000Dividend income from investments2,200less: expensesSalaries paid to owners(150,000)Wages paid to employees(120,000)9,000Rent(20,000)2,500

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 9 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
Grud
Tags
Balance Sheet, Depreciation, Income Statement, Expense, Generally Accepted Accounting Principles

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture