Question

Trial Balance January 31, 2019 Account Title Credit Debit 55,740 4,000 120 40,000 158 10,260 428 350 Cash Accounts Receivable Allowance for Doubtful Accounts Buildings Accumulated Depreciation—Buildings Equipment Accumulated Depreciation-Equipment Accounts Payable Income Tax Payable Deferred Revenue Common Stock Service Revenue Advertising Expense Bad Debt Expense Depreciation Expense Salaries and Wages Expense Utilities Expense Income Tax Expense Total 2,083 2,000 100,000 38,000 350 120 586 23,000 7,000 2,083 143,139 $ 143,139

Answer 1

		Balance sheet
					$	$
		Assets
Current assets:
Cash						55740
Accounts receivable					4000
Less: Allowance for doubtful accounts					120	3880
Total current assets				A		59620
Property,plant and equipment:
Buildings					40000
Less: Accumulated depreciation-Buildings					158	39842
Equipment					10260
Less: Accumulated depreciation-Equipment					428	9832
Total property,plant and equipment				B		49674
Total assets				C=A+B		109294
	Liabilities and stockholder's equity
Current liabilities:
Accounts payable						350
Income tax payable						2083
Deferred revenue						2000
Total current liabilities				D		4433
Stockholder's equity:
Common stock						100000
Retained earnings		(Net income for Jan-Note:1)				4861
Total stockholder's equity				E		104861
Total liabilities and stockholder's equity				F=D+E		109294
Note:1
Net income:
					$	$
Service revenue						38000
Less: Expenses
Advertising expense					350
Baddebt expense					120
Depreciation expense					586
Salaries and wages expense					23000
Utilities expense					7000
Income tax expense					2083	33139
Net income						4861