Question

The following accounts are taken from Kijijo Riding Corp., a company that specializes in occupational therapy and horseback riding lessons, as of December 31 KÍJİJO RIDING CORP. Unadjusted Trial Balance At December 31 Debits $65,600 7,050 8,450 73,350 25,950 Credits Account Name Cash Accounts Receivable Prepaid Insurance Equipment Land Accounts Payable Deferred Revenue Notes Payable (long-term) Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Repairs and Maintenance Expense Office Expenses Totals 33,700 1,400 61,000 5,000 54,045 30,500 4,000 790 455 $185,645 $185,645

Answer 1

Answers

• Requirement 1

Income Statement
Revenues:
Service Revenue	$30,500
Total Revenue	$30,500
Expenses:
Salaries & Wages expense	$4,000
Repairs & Maintenance expense	$790
Office Expense	$455
Total Expenses	$5,245
Net Income	$25,255

• Requirement 2

Statement of Retained Earnings
Retained Earnings, Jan 1	$54,045
Add: Net Income	$25,255
Less: Dividends	$0
Retained Earnings, Dec 31	$79,300

• Requirement 3

Balance Sheet
ASSET
Current Assets:
Cash	$65,600
Accounts receivable	$7,050
Prepaid Insurance	$8,450
Total Current Assets	$81,100
Equipments	$73,350
Land	$25,950
Total Assets	$180,400
Current Liabilities:
Accounts Payable	$33,700
Deferred Revenue	$1,400
Total Current Liabilities	$35,100
Notes Payable - Long Term	$61,000
Total Liabilities	$96,100
Stockholder's Equity
Common Stock	$5,000
Retained earnings	$79,300
Total Stockholder's Equity	$84,300
Total Liabilities & Stockholder's Equity	$180,400