Question

Exercise 4-09 a1,a2-b Carla Vista Company ended its fiscal year on July 31, 2020. The company's adjusted trial balance as of the end of its fiscal year is as follows. Credit Carla Vista Company Adjusted Trial Balance July 31, 2020 Account Titles Debit 101 Cash $10,600 112 Accounts Receivable 8,900 157 Equipment 15,700 158 Accumulated Depreciation Equip 201 Accounts Payable 200 Unearned Rent Revenue 301 Owner's Capital 306 Owner's Drawings 16,000 400 Service Revenue 429 Rent Revenue 711 Depreciation Expense 6,900 726 Salaries and Wages Expense 56,400 732 Utilities Expense 15,100 $129,600 $7.900 4,800 2,300 44.100 63,700 6,800 $129,600 Prepare an income statement for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) CARLA VISTA COMPANY Income Statement SHOW UIST OP ACCOUNTS

Answer 1

CARLA VISTA COMPANY
Income Statement
For the Year Ended June 31, 2020
Revenues
Service Revenue	$63,700
Rent Revenue	$6,800
Total Revenues       [$63,700 + $6,800]		$70,500
Expenses:
Depreciation Expense	$6,900
Salaries and Wages Expense	$56,400
Utilities Expense	$15,100
Total Expenses        [$6,900 + $56,400 + $15,100]		$78,400
Net income / (loss)      [$70,500 - $78,400]		($7,900)

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CARLA VISTA COMPANY
Owner's Equity Statement
For the Year Ended June 31, 2020
Owners Capital, August 01, 2019		$44,100
Less:
Net Income / (Loss)	($7,900)
Drawings	($16,000)
		($23,900)
Owners Capital, July, 31, 2020 [$44,100 - $23,900]		$20,200

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CARLA VISTA COMPANY
Balance Sheet
June 31, 2020
Assets
Current Assets:
Cash	$10,600
Accounts Receivable	$8,900
Total current assets            [$10,600 + $8,900]		$19,500
Property, Plant, and Equipment
Equipment	$15,700
Less: Accumulated depreciation - Equipment	($7,900)	$7,800
Total assets           [$19,500 + $7,800]		$27,300
Liabilities and Owners Equity
Current liabilities:
Accounts Payable	$4,800
Unearned rent revenue	$2,300
Total current liabilities       [$4,800 + $2,300]		$7,100
Owners Equity
Owner's Capital    [Refer Owner's Equity Statement]		$20,200
Total Liabilities and Owner's equity            [$7,100 + $20,200]		$27,300