Problem 5.2A - After Closing Trial Balance Cash 58,525...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Lawn Pride, INC Income Statement Revenue Mowing Revenue Earned Expenses Insurance Expense 2,400 Office Rent Expense 36,000 Supplies Expense 5,200 Salary Expense 60,000 Depreciation Expense: Trucks 30,000 Depreciation Expense: Mowing Equipment 4,000 Repair and Maintence Expense 3,000 Fuel Expense 1,500 Misc Expense 5,000 Interest Expense 3,000 Income Before Taxes Income Tax Expense 6,000 NET INCOME Lawn Pride, INC Retained Earnings Statement Retained Earnings Net Income Earned in 2007 Less: Dividends Retained Earnings for 2007 Lawn Pride INC Balance Sheet Assets Cash Accounts Receivable Prepaid Rent Unexpired Insurance Supplies Trucks 150,000 Accumulated Depriciation Trucks 120,000 Mowing Equipment 20,000 Accumulated Depriciation Mowing Equipment 12,000 TOTAL ASSETS Liabilities Notes Payable Accounts Payable
Background image of page 1

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

View Full DocumentRight Arrow Icon
Unearned mowing revenue Interest Payable Salaries Payable Income Tax Payable TOTAL LIABILITIES Stock Holders Equity Capital Stock Retained Earnings Total Stockholders Equity Total Liablities and Stockholders Equity Lawn Pride, INC
Background image of page 2
Background image of page 3

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

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: After Closing Trial Balance Cash 58,525 Accounts Receivable 4,800 Prepaid Rent 3,000 Unexpired Insurance 8,000 Supplies 1,075 Trucks 150,000 Accumulated Depreciation: Trucks Mowing Equipment 20,000 Accumulated Depreciation: Mowing Equipment Unearned mowing revenue Accounts Payable Notes Payable Salaries Payable Interest Payable Income Tax Payable Capital Stock Retained Earnings 245400 After preparing the Income Statement, retained earnings statement, and balance sheet, it looks as if Lawn Pride did not have a very successful year if the net income of $13,900 is twelve months worth of business. At this point the do not seem that liquid and most of their equipment is about to be worth nothing. 170,000 19,900 13,900 30,000 13,900 5,000 38,900 58,525 4,800 3,000 8,000 1,075 30,000 8,000 113,400 50,000 1,500 900 150 900 1,050 45,500 20,000 38,900 58,900 113,400 120,000 12,000 900 1,500 50,000 900 150 1,050 20,000 38,900 245,400...
View Full Document

Page1 / 4

Problem 5.2A - After Closing Trial Balance Cash 58,525...

This preview shows document pages 1 - 4. Sign up to view the full document.

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