Question

Problem 1 IS asked for each olot 80 marks) Given the adjusted trial balance for Destiny Inc. below as of December 31, 2017, prepare the income statement and statement of retained earnings for the year ended December 31, 2017 Destiny Inc. Adjusted Trial Balance December 31, 2017 Debit Credit $62,500 40,200 550 820 36,000 Cash Accounts receivable Supplies Prepaid insurance Equipment Accumulated depreciation-equipment Accounts payable Unearned service revenue Salary payable Common shares Retained earnings Dividends Service revenue Salary expense Supplies expense Insurance expense Depreciation expense-equipment Utilities expense $8,800 6,500 15,700 42,650 23,295 10,000 8,000 82,200 32,850 3,200 800 925 3,300 $189.145 $189,145

Answer 1

$ 82,200 Destiny Inc. Income Statement December 31, 2017. Service Revenue Less : Operating expenses Salary expense $ (32,850) Supplies expense $ (3,200) Insurance expense S (800) Depreciation expense-equipment S (925) Utilities expense S (3,300) Total Operating expenses Net Income S (41,075) $ 41.125

Destiny Inc. Statement of Retained earnings December 31, 2017. Beginning Balance $ 10,000 Add: Net income $ 41,125 51,125 (8,000) 43,125 Less : Dividend Ending Balance S S