Question

Mei-ling had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Mei-ling prepared the following adjusted trial balance. 51 MATCHA CREATIONS Adjusted Trial Balance December 31, 2021 Account Titles Debit Credit Cash NT$1,016 Accounts Receivable 754 Supplies 304 Prepaid Insurance 1,040 Equipment 1,032 Accumulated Depreciation Equipment NT$38 Accounts Payable 66 Salaries and Wages Payable Unearned Service Revenue 258 Interest Payable Notes Payable 1,720 Share Capital-Ordinary Dividends 430 Service Revenue 3,882 Salaries and Wages Expense 865 Utilities Expense Advertising Expense 144 Supplies Expense 880 Depreciation Expense Insurance Expense Interest Expense NT$6,721 NT$6,721 18 688 106 18

Answer 1

Income Statement:

MATCHA CREATIONS
Income Statement
For the two months Ended December 31,2021
Revenues:
Service revenue		3882
Expenses:
Salaries and wages expense	865
Utilities expense	106
Advertising expense	144
Supplies expense	880
Depreciation expense	38
Insurance expense	94
Interest expense	18
Total expenses		2145
Net income/(Loss)		1737

Statement of retained earnings:

MATCHA CREATIONS
Retained Earnings Statement
For the two months Ended December 31,2021
Retained earnings, November 1	0
Add: Net income / (Loss)	1737
	1737
Less: Dividends	-430
Retained earnings, December 31	1307

Balance Sheet:

MATCHA CREATIONS
Statement of Financial Position
December 31,2021
Property, Plant and Equipment:
Equipment	1032
(Less): Accumulated depreciation	-38	994
Current Assets:
Cash	1016
Accounts receivable	754
Supplies	304
Prepaid insurance	1040
Total current assets		3114
Total assets		4108
Equity and Liabilities
Equity:
Share capital-ordinary	688
Retained earnings	1307
Total Equity		1995
Non-current liabilities:
Notes payable	1720
Interest payable	18
Total non-current liabilities		1738
Current liabilities:
Accounts payable	66
Salaries and wags payable	51
Unearned service revenue	258
Total current liabilities		375
Total Equity and Liabilities		4108