Question

The above question needs to be answered:

Review Material Homework 2 1. Prepare all necessary adjusting entries for CGS at December 31, 2019. Assume that the company has made no adjusting entries throughout the year. Post the entries to T-accounts. For your adjusting entries, the following additional information is relevant: 1. As of December 31, CSG had 1,650 gallons of gasoline remaining from its bulk purchase on December 17. In addition, $220 of the other supplies have been used by December 31. 2. CSG calculates depreciation using the straight-line method and in the year it makes acquisitions and disposals, it calculates depreciation to the nearest month. CSG has not yet recorded any depreciation for 2019. Annual depreciation for the equipment held at the start of 2019 totals $7,300 and no equipment was purchased from January through November 2019. The new lawn mowers purchased on December 1 will last 5 years with no residual value after 5 years. 2. Prepared a properly formatted income statement for CGS for the year-ended December 31, 2019.

Below is a screenshot of the Account Balances that were used for the previous assignment.

If anything else is needed please comment below. Thank you

Answer 1

income statement
for Year ending December 31 2019
Landscaping service revenue		$344,600
less operating expenses
Supplies expenses	$22,350
Wages expenses	$218,000
Rent expenses	$14,600
Utilities expenses	$7,000
depreciation expenses	$7,300	269250
Net income		$75,350
note as mentioned by you that the account are after posting the adjusting entries
hence this is the income statement. If the entries are not posted than the income sttaement is
T accounts
supplies					calculation
bal	6740	supplies expenses	5310		6740-1650plus 220
end bal	1650
assuming that the supplies balance of 6740 has all supplies of dec 17 and dollar 220 more
	supplies expenses
bal	22350
supplies	5310
end bal	27660
	accumulated depreciation
		bal	14200
		depreciation	7300
		ending bal	21500
	depreciation expenses
accumulated dep	7300
income statement
for Year ending December 31 2019
Landscaping service revenue		$344,600
less operating expenses
Supplies expenses	$27,660
Wages expenses	$218,000
Rent expenses	$14,600
Utilities expenses	$7,000
depreciation expenses	$7,300	274560
Net income		$70,040
if any doubt please comment