Question

COMPREHENSIVE PROBLEM: PARTS 1 - 5 - 90 POINTS PREPARING FINANCIAL STATEMENTS REQUIRED: Comprhensive Part 1: Anaylyze and Post the transactions to Accounts Journal entries are not required, but you may write them next to the transaction if it helps you. Remember to identify each transaction with a transaction on the T-accounts Comprehensive Part 2: Create a Trial Balance from your prepared T-Accounts Comprehensive Farts: Part 3: Create an Income Statement for the year Comprehensive Part 4: Create a Statement of Retained Earnings Comprehensive Part 5: Create a Balance Sheet FULL CREDIT INCLUDES PROPER TITLES AND HEADINGS ON FINANCIAL STATEMENTS Rocked Out, Inc. Chart of Accounts (not all accounts will be used) A/P Cash A/R Wages payable Unearned Revenue Loan Payable Music Supplies Equipment Prepaid Expenses Vehicle Common Stock Retained Earnings Dividends Consulting Revenue Insurance (expense) Utilities (expense) Wages (expense) Page

Answer 1

1) T-accounts:
DEBIT	AMOUNT $	CREDIT	AMOUNT $
Cash a/c
1	200000	6	12000
4	60000	8	18000
5	120000	10	70000
7	150000	11	18000
		CB	412000
Common Stock a/c
		1	200000
A/R account
2	120000	4	60000
5	120000	CB	180000
Consulting revenue a/c
CB	360000	2	120000
		5	240000
Music Supplies a/c
3	30000
A/P account
6	12000	3	30000
CB	18000
Unearned revenue a/c
		7	150000
Dividend a/c
8	18000
Wages expense a/c
9	140000
Wages payable a/c
		9	140000
Prepaid expenses a/c
10	70000
Vehicle a/c
11	90000
Loan payable a/c
		11	72000

2) Trial Balance:
Acc titles	Debit $	Credit $
Cash	412000
A/R	180000
Music supplies	30000
Common Stock		200000
Consulting revenue		360000
A/P		18000
Unearned revenue		150000
Dividend	18000
Wages expense	140000
wages payable		140000
Prepaid expenses	70000
Vehicle	90000
Loan payable		72000
Total	940000	940000

3) Income statement:
	Amount $
Consulting revenue	360000
Less: expenses:	140000
Net Income	220000
4) Statement of Retained Earnings:
	Amount $
Opening Balance	0
add: Net income	220000
less:Dividend	18000
Closing Balance	202000
5) Balance Sheet:
Assets:	Amount $
Cash	412000
A/R	180000
Music supplies	30000
Prepaid expenses	70000
Current assets	692000
Vehicle	90000
Total Assets	782000
Liabilities & SH Equity:	Amount $
A/P	18000
Unearned revenue	150000
wages payable	140000
Current liablities	308000
Loan payable	72000
SH Equity:
Common Stock	200000
Retained earnings	202000
Total Liabi. & SH Equity	782000