Question

cial Statement Preparation - 20 marks (suggested time: 36 minutes) QUESTION #6 - Financial Statement Preparation - 20 marks (suges The adjusted trial balance of White Enamel Dental Inc. follows: White Enamel Dental Inc. Adjusted Trial Balance December 31, 2018 $14,000 11,000 4,000 171,000 100,000 Cash Accounts receivable Prepaid expenses Equipment Building Accounts payable Note payable Share capital Retained earnings Dividends Service revenue Rent expense Advertising expense Wage expense Supplies expense Total $30,000 120,000 102,000 40,000 22,000 86,000 14,000 3,000 32,000 7,000 $378,000 $378,000 Required: a) Prepare the income statement of White Enamel Dental Inc. for the year ended December 31, 2018 b) Prepare the company's classified balance sheet at December 31, 2018.

Answer 1

a) Prcome statement Revenue $ 86,000 -Sales devenue expenses - Rent expense - - Advertising - lavage expense - - Supplies $14.000 $ 3000 $32,000 4000 $ 56,000 Net Income $80,000 $22.000 Dividend Reansfered to Balance sheer $8000 6) Balance sheet Assets - Building - equipment - Pue paid expenses - Accounts receivable - coun tolai Equity and liability - Share capitau - Retained earnings - Note payable - Alc payable $100,000 $17.000 $4,000 - $ 16000 - 14.000 $ 300.000 - $102,000 $ 48,000 $ 1201000 - € 30,000 $ 300,000