Question

The Monty Corp. opened for business on May 1, 2019. Its trial balance before adjustment on May 31 is as follows. Monty Corp. Trial Balance May 31, 2019 Account Number Debit Credit 101 Cash $ 3,600 126 Supplies 2,050 130 Prepaid Insurance 1,800 140 Land 14,000 141 Buildings 61,100 149 Equipment 15,000 201 Accounts Payable $ 11,800 3,300 208 Unearned Rent Revenue 275 Mortgage Payable 40,000 311 Common Stock 35,900 429 Rent Revenue 11,250 610 Advertising Expense 600 726 Salaries and Wages Expense 3,200 732 Utilities Expense 900 $102,250 $102,250

Answer 1

Balance Sheet of Monty Corp is as prepared below:

Monty Company
Balance Sheet
As at May 31,2019
Particulars	Amount ($)	Amount ($)
ASSETS
Current Assets:
Cash	3,600
Supplies	700
Prepaid insurance	1,650
Total Current Assets		5,950
Land		14,000
Buildings	61,100
Accumulated dep-building	-3,060	58,040
Equipment	15,000
Accumulated dep-equipment	-1,500	13,500
Total Assets		91,490
LIABILITIES AND STOCKHOLDERS EQUITY
Liabilities :
Current Liabilities
Accounts Payable	11,800
Unearned Rent Revenue	1,100
Salaries and Wages Payable	700
Interest Payable	400
Total Current Liabilities		14,000
Mortgage Payable		40,000
Total Liabilities		54,000
Total Stockholders' Equity
Common Stock	35,900
Retained earnings	1,590	37,490
Total Liabilities and Stockholders' Equity		91,490

Working:

Monty Company
Income Statement
For the Year Ended May 31, 2019
Particulars	Amount ($)	Amount ($)
Rent Revenue		13,450
Less:
Advertising Expense	600
Salaries and Wages Expense	3,900
Utilities Expense	900
Depreciation Expense	4,560
Supplies Expense	1,350
Interest Expense	400
Insurance Expense	150
Total Operating Expenses		11,860
Operating Income		1,590

Monty Company
Statement of Retained earnings
For the Year Ended May 31, 2019
Particulars		Amount ($)	Amount ($)
Opening balance			0
Add:
Net income		1,590
Less:
Closing balance			1,590