Accounting

Prepare income statement dr cr c as h 3,9 5 0 $ a c c

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Unformatted text preview: Prepare Income Statement Dr. Cr. C as h 3 ,9 5 0 $ A c c ounts rec eivable 1 ,8 0 0 S upplies 8 ,6 7 0 P repaid ins uranc e 2 ,3 0 0 E quipm ent 2 6 ,0 0 0 A c c um . depr. - E quip. 3 7 5 $ A c c ounts pay able 6 ,2 0 0 S alaries pay able 2 1 0 U nearned revenue 2 ,7 5 0 C om m on S toc k 3 0 ,0 0 0 R etained E arnings - D ividends 6 0 0 C ons ulting revenue 7 ,8 5 0 R ental revenue 3 0 0 D epr. ex pens e 3 7 5 S alaries ex pens e 1 ,6 1 0 Ins uranc e ex pens e 1 0 0 R ent ex pens e 1 ,0 0 0 S upplies ex pens e 1 ,0 5 0 U tilities ex pens e 2 3 0 Totals 4 7 ,6 8 5 $ 4 7 ,6 8 5 $ Ad ju ste d De ce m be r 31, 2011 T ria l Ba la n ce 3-25 2. Prepare Statement of Retained Earnings FastForward Income Statement For the Month Ended December 31, 2011 Revenues: Consulting revenue 7,850 $ Rental revenue 300 Total Revenues 8,150 Operating expenses: Depr. expense - Equip. 375 $ Salaries expense 1,610 Insurance expense 100 Rent expense 1,000 Supplies expense 1,050 Utilities expense 230 Total expenses 4,365 Net income 3,785 $ FastForward Statement of Retained Earnings For the Month Ended December 31, 2011 Retained earnings, 12/1/11 $ -0- Add: Net income 3,785 Less: Dividends 600 Retained earnings 12/31/11 3,185 $ Note that net income from the Income Statement carries to the Statement of Retained Earnings. 3-26 FastForward Balance Sheet December 31, 2011 Assets Cash 3,950 $ Accounts receivable 1,800 Supplies 8,670 Prepaid insurance 2,300 Equipment 26,000 Less: accum. depr. (375) 25,625 Total assets 42,345 $ Liabilities Accounts payable 6,200 $ Salaries payable 210 Unearned revenue 2,750 Total liabilities 9,160 $ Equity Common stock 30,000 Retained earnings 3,185 Total liabilities and equity 42,345 $ D r. C r. Cash 3 ,950 $ Accoun ts rece ivab le 1 ,800 Supp lies 8 ,670 P repa id insurance 2 ,300 Equ ipmen t 26 ,000 Accum . depr. - Equ ip . 375 $ Accoun ts payab le 6,200 Sa laries payab le 210 Unearned revenue 2,750 Chuck Tay lor, Cap ita l 30,000 Chuck Tay lor, W ithd 'l. 600 Consu lting revenue 7,850 Ren ta l revenue 300 Depr. expense 375 Sa laries expense 1 ,610 Insurance expense 100 Ren t expense 1 ,000 Supp lies expense 1 ,050 U tilities expense 230 To ta ls 47 ,685 $ 47,685 $ Ad jus ted Trial Balance FastForward Statement of Retained Earnings For the Month Ended December 31, 2011 Retained earnings, 12/1/11 $ -0- Add: Net income 3,785 Less: Dividends 600 Retained earnings 12/31/11 3,185 $ 3. Prepare Balance Sheet 3-27 The Closing Process: Temporary and Permanent Accounts Temporary (nominal) accounts accumulate data related to one accounting period. They include all income statement accounts, the dividends account, and the Income Summary account. These accounts are “closed” at the end of the period to get ready for the next accounting period....
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Prepare Income Statement Dr Cr C as h 3,9 5 0 $ A c c ounts...

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