Question

LOS 13-17A. Trial Balance and Financial Statements The following account balances, in alphabetical order, are from the general ledger of Milo's Waterproofing Service at January 31. The firm began business on January 1. All accounts have normal balances. Accounts payable...... Accounts receivable. Advertising expense.. Cash.......... .. Common stock ...... Dividends.......... Interest expense........... $ 3,500 19,000 1,420 12,600 29,740 2.000 50 Notes payable.... Rent expense... Salaries expense .. Service fees earned. Supplies ....... Supplies expense.. Utilities expense.... $ 5,000 1,500 8,000 25,760 8,860 10,250 320 Required a. Prepare a trial balance from the given data. b. Prepare an income statement for the month of January. c. Prepare a statement of stockholders' equity for the month of January Prepare a balance sheet as of January 31.

Answer 1

Trial balance as at 31st January Credit S Debit S 12,600 19,000 8,860 3,500 5,000 29,740 2,000 Particulars Cash Accounts Receivable Supplies Accounts Payable Notes Payable Common stock Dividends Service fee earned Salaries expense Rent expense Advertising expense Supplies expense Utilities expense Interest expense Total 25,760 8,000 1,500 1,420 10,250 320 50 64,000 64,000

Amount $ Amounts 25,760 8,000 1,500 Income statement for the year ended 31st December :- Particulars Service fee earned Less: Expenses Salaries expense Rent expense Advertising expense Supplies expense Utilities expense Interest expense Total Expenses Net Income 1,420 10,250 320 50 21,540 4,220 Amounts Statement of stockholders equity as at 31st January :- Particulars Common stock:- Beginning balance Add: Issued during month Less: Purchase of own stock Ending balance 29,740 29,740 Retaiend earnngs : Beginning balance Add: Net Income 4,220 4,220 2.000 Less: Dividend Ending balance Total stockholders equity 2,220 31,960

Amounts Balance Sheet :: Assets Current Assets : Cash Accounts Receivable Supplies Total Current Assets (A) Amounts Liabilities and Shareholders Equity Current Liabilities : 12,600 Accounts Payable 19,000 Notes Payable 8,860 40,460 Total Liabilities (A) 3,500 5,000 8,500 Non-Current Assets: Property, Plant and Equipment Net fixed assets Shareholders Equity :- Shareholders Equity 31,960 Net Property, Plant and Equipment (B) 31,960 Total Shareholders Equity (B) 40,460 Liabilities and Shareholders Equity (A+B) Total Assets (A+B) 40,460