Chapter 5 - Student Name: Class: Problem 05-03 MYSTIC...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Student Name: Class: Problem 05-03 MYSTIC MASTERS, INC. Income Statement for the year ended December 31, 2009 Revenue: Client revenue earned $52,000 Expenses: Insurance expense $6,000 Office rent expense 9,000 Supplies expense 440 Salary expense 48,000 1,400 Office and telephone expense 3,000 Internet service expense 4,900 Legal expense 1,500 Interest expense 4,000 Miscellaneous expense 5,000 83,240 Net income (loss) $(31,240) «- Correct! MYSTIC MASTERS, INC. Statement of Retained Earnings for the year ended December 31, 2009 Retained earnings (1/1/09) $2,600 Less: Net income (loss) (31,240) Retained earnings (deficit) (12/31/09) $(28,640) «- Correct! MYSTIC MASTERS, INC. Balance Sheet December 31, 2009 Assets Cash $960 Accounts receivable 300 Unexpired insurance 2,000 Prepaid rent 1,500 Supplies 200 $8,400 Less: 5,200 3,200 TOTAL ASSETS $8,160 «- Correct! Liabilities Accounts payable $6,540 Notes payable 24,000 Salaries payable 1,700 Interest payable 360 Unearned client revenue 200 TOTAL LIABILITIES $32,800 «- Correct! Stockholders' Equity Capital stock $4,000 Retained deficit (28,640) TOTAL STOCKHOLDERS' EQUITY (DEFICIT) $(24,640) «- Correct! TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $8,160 «- Correct! MYSTIC MASTERS, INC. General Journal
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Student Name: Class: Problem 05-03 2009 Account Titles Debit Credit Dec. 31 Client Revenue Earned 52,000 Income Summary 52,000 «- Try again! Dec. 31 Income Summary 83,240 Insurance Expense $6,000 «- Correct! Office Rent Expense 9,000 «- Correct! Supplies Expense 440 «- Correct! Salary Expense 48,000 «- Correct! 1,400 «- Correct! Office and Telephone Expense 3,000 «- Correct! Internet Service Expense 4,900 «- Correct! Legal Expense 1,500 «- Correct! Interest Expense 4,000 «- Correct! Miscellaneous Expense 5,000 «- Correct! Dec. 31 Retained Earnings 31,240 Income Summary 31,240 «- Correct! No dividends were declared in 2009 MYSTIC MASTERS, INC. After-Closing Trial Balance December 31, 2009 Cash $960 Accounts receivable 300 Unexpired insurance 2,000 Prepaid rent 1,500 Supplies 200 8,400 $5,200 Accounts payable 6,540 Notes payable 24,000 Salaries payable 1,700 Interest payable 360 Unearned client revenue 200 Capital stock 4,000 Retained earnings 28,640 $42,000 $42,000 ^ Correct! ^ Correct!
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/15/2010 for the course ACC ACC50 taught by Professor Smith during the Summer '10 term at Rutgers.

Page1 / 9

Chapter 5 - Student Name: Class: Problem 05-03 MYSTIC...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online