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TOBIQUE LTD. | ||
Income Statement | ||
Month Ended August 31,2018 | ||
Revenues: | ||
Service Revenue | $9,290 | |
Interest Revenue | $20 | |
Total revenues | $9,310 | |
Expenses: | ||
Depreciation Expense | $203 | |
Rent Expense | $380 | |
Advertising Expense | $220 | |
Supplies expense | $750 | |
Salaries expense | $6,230 | |
Total Expenses | $7,783 | |
Income before income tax | $1,527 | |
Income tax | $290 | |
Net income | $1,237 |
TOBIQUE LTD. Statement of Changes in Equity Month Ended August 31, 2018 |
||||||
Common Shares | Retained Earnings | Total Equity | ||||
Beginning balance | $12000 | $6040 | $18040 | |||
Net income |
1237 |
1237 |
||||
Dividend |
-550 |
-550 |
||||
Ending balance | 12000 | $6727 | $18727 |
Date |
Account Titles and Explanation |
Debit |
Credit |
Date | account and explanation | Debit | Credit |
Aug 31 | Service revenue | 9290 | |
Interest revenue | 20 | ||
Income summary | 9310 | ||
(To close revenue) | |||
Aug 31 | Income summary | 8073 | |
Depreciation expense | 203 | ||
Rent expense | 380 | ||
Advertising expense | 220 | ||
Supplies expense | 750 | ||
Salaries expense | 6230 | ||
Income tax expense | 290 | ||
(To close expense) | |||
Aug 31 | Income summary | 1237 | |
Retained earnings | 1237 | ||
(To close net income) | |||
Aug 31 | Retained earnings | 550 | |
Dividend | 550 | ||
(To close dividend) | |||
Tobique records adjustments monthly. Adjustment data for the
month of August are as follows:
1. | One month’s worth of advertising services have been received. | ||
2. | The August rent has expired. | ||
3. | Accrued salaries payable are $1,670. | ||
4. | Depreciation for the month is $203. | ||
5. | Supplies on hand at August 31 are $1,000. | ||
6. | Services were performed to satisfy $790 of unearned revenue. | ||
7. | One month of interest revenue related to the $4,000 note receivable has accrued. The note was issued on June 30 and is due October 31 and has a 6% annual interest rate. Interest is due at maturity. | ||
8. | Income tax of $290 is estimated to be owed for the month of August. |
(h) Prepare a post-closing trial balance.
TOBIQUE LTD. |
||
Debit |
Credit |
Post Closing Trial Balance | ||
Account Titles | Debit | Credit |
Cash | $ 4,110 | |
Accounts Receivable | $ 6,100 | |
Supplies | $ 1,000 | |
Prepaid Advertising | $ 220 | |
Interest Receivable | $ 40 | |
Notes Receivable | $ 4,000 | |
Equipment | $ 12,010 | |
Accumulated Depreciation - Equipment | $ 2,233 | |
Accounts Payable | $ 3,220 | |
Salaries and Wages Payable | $ 1,670 | |
Income Tax Payable | $ 290 | |
Unearned Revenue | $ 1,340 | |
Common Stock | $ 12,000 | |
Retained Earnings | $ 6,727 | |
Service Revenue | ||
Interest Revenue | ||
Supplies Expense | ||
Salaries and Wages Expense | ||
Depreciation Expense - Equipment | ||
Advertising Expense | ||
Rent Expense | ||
Income Tax Expense | ||
Total | $ 27,480 | $ 27,480 |
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances,...
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Tobique Ltd. Accounts payable $2,500 Interest receivable 20 Accounts receivable 4,740 Note receivable, due October 31, 2018 4,000 Accumulated depreciation—equipment 2,030 Retained earnings 6,040 Cash 5,520 Salaries payable 1,460 Common shares 12,000 Supplies 1,030 Equipment 10,100 Unearned revenue 1,380 During August, the following summary transactions were completed. Aug. 1 Paid $440 cash for advertising in local newspapers....
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Tobique Ltd. Accounts payable $2,500 Interest receivable 20 Accounts receivable 4,740 Note receivable, due October 31, 2018 4,000 Accumulated depreciation—equipment 2,030 Retained earnings 6,040 Cash 5,520 Salaries payable 1,460 Common shares 12,000 Supplies 1,030 Equipment 10,100 Unearned revenue 1,380 During August, the following summary transactions were completed. Aug. 1 Paid $440 cash for advertising in local newspapers....
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Tobique Ltd. Accounts payable $2,500 Interest receivable 20 Accounts receivable 4,740 Note receivable, due October 31, 2018 4,000 Accumulated depreciation—equipment 2,030 Retained earnings 6,040 Cash 5,520 Salaries payable 1,460 Common shares 12,000 Supplies 1,030 Equipment 10,100 Unearned revenue 1,380 During August, the following summary transactions were completed. Aug. 1 Paid $440 cash for advertising in local newspapers....
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Tobique Ltd. Accounts payable $2,500 Interest receivable 20 Accounts receivable 4,740 Note receivable, due October 31, 2018 4,000 Accumulated depreciation—equipment 2,030 Retained earnings 6,040 Cash 5,520 Salaries payable 1,460 Common shares 12,000 Supplies 1,030 Equipment 10,100 Unearned revenue 1,380 During August, the following summary transactions were completed. Aug. 1 Paid $440 cash for advertising in local newspapers....
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Tobique Ltd. Accounts payable $2,500 Interest receivable 20 Accounts receivable 4,740 Note receivable, due October 31, 2018 4,000 Accumulated depreciation—equipment 2,030 Retained earnings 6,040 Cash 5,520 Salaries payable 1,460 Common shares 12,000 Supplies 1,030 Equipment 10,100 Unearned revenue 1,380 During August, the following summary transactions were completed. Aug. 1 Paid $440 cash for advertising in local newspapers....
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Tobique Ltd. Accounts payable $2,500 Interest receivable 20 Accounts receivable 4,740 Note receivable, due October 31, 2018 4,000 Accumulated depreciation—equipment 2,030 Retained earnings 6,040 Cash 5,520 Salaries payable 1,460 Common shares 12,000 Supplies 1,030 Equipment 10,100 Unearned revenue 1,380 During August, the following summary transactions were completed. Aug. 1 Paid $440 cash for advertising in local newspapers....
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Tobique Ltd. Accounts payable $2,500 Interest receivable 20 Accounts receivable 4,740 Note receivable, due October 31, 2018 4,000 Accumulated depreciation—equipment 2,030 Retained earnings 6,040 Cash 5,520 Salaries payable 1,460 Common shares 12,000 Supplies 1,030 Equipment 10,100 Unearned revenue 1,380 During August, the following summary transactions were completed. Aug. 1 Paid $440 cash for advertising in local newspapers....
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Tobique Ltd. Accounts payable $2,500 Interest receivable 20 Accounts receivable 4,740 Note receivable, due October 31, 2018 4,000 Accumulated depreciation—equipment 2,030 Retained earnings 6,040 Cash 5,520 Salaries payable 1,460 Common shares 12,000 Supplies 1,030 Equipment 10,100 Unearned revenue 1,380 During August, the following summary transactions were completed. Aug. 1 Paid $440 cash for advertising in local newspapers....
On August 1, 2018, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Tobique Ltd. Accounts payable $2,500 Interest receivable 20 Accounts receivable 4,740 Note receivable, due October 31, 2018 4,000 Accumulated depreciation—equipment 2,030 Retained earnings 6,040 Cash 5,520 Salaries payable 1,460 Common shares 12,000 Supplies 1,030 Equipment 10,100 Unearned revenue 1,380 During August, the following summary transactions were completed. Aug. 1 Paid $440 cash for advertising in local newspapers....
TOBIQUE LTD. Income Statement Month Ended August 31,2018 Revenues: Service Revenue $9,290 Interest Revenue $20 Total revenues $9,310 Expenses: Depreciation Expense $203 Rent Expense $380 Advertising Expense $220 Supplies expense $750 Salaries expense $6,230 Total Expenses $7,783 Income before income tax $1,527 Income tax $290 Net income $1,237 TOBIQUE LTD. Statement of Changes in Equity Month Ended August 31, 2018 Common Shares Retained Earnings Total Equity Beginning balance $12000 $6040 $18040 Net income 1237 1237 Dividend -550 -550 Ending balance...