Question

Part Five Instructions Prepare an Adjusted Trial Balance, then an Income Statement, Statement of Retained Earnings and a Balance Sheet and staple them to the inside front cover of the practice set in the correct order as listed here. These statements should be done in Word or Excel.

Answer 1

1.

AHH Boots Adjusted Trial Balance September 30, 2019
Account Titles	Debit	Credit
	$	$
Cash	34,400
Accounts Receivable	0
Inventory: BN Boots	1,980
Inventory : BLK Boots	2,580
Office Supplies	200
Shipping Supplies	50
Prepaid Rent	6,075
Prepaid Insurance	6,600
Prepaid Advertising	300
Computer Equipment	5,100
Accumulated Depreciation : Computer Equipment		80
Furniture and Fixtures	12,000
Accumulated Depreciation : Furniture and Fixtures		140.48
Accounts Payable:		0
Notes Payable: Wells Fargo Bank		10,000
Notes Payable: Office Mart		4,125
Wages Payable		1,200
Interest Payable		100
Utilities Payable		265
Common Stock		40,000
Retained Earnings		0
Dividends	250
Sales		40,100
Cost of Goods Sold	19,000
Office Supplies Expense	300
Shipping Supplies Expense	450
Insurance Expense	600
Wages Expense	1,200
Credit Card Expense	520
Advertising and Promotion Expense	850
Utility Expense	265
Rent Expense	2,025
Legal Expense	900
Depreciation Expense: Computer Equipment	80
Depreciation Expense: Furniture and Fixtures	140.48
Interest Expense	145
Totals	$ 96,010.48	$ 96,010.48

2.

AHH Boots Income Statement For the month ended September 30, 2019
Sales		$ 40,100
Cost of Goods Sold		19,000
Gross Profit		21,100
Selling and Administrative Expenses
Office Supplies Expense	300
Shipping Supplies Expense	450
Insurance Expense	600
Wages Expense	1,200
Credit Card Expense	520
Advertising and Promotion Expense	850
Utility Expense	265
Rent Expense	2,025
Legal Expense	900
Depreciation Expense: Computer Equipment	80
Depreciation Expense: Furniture and Fixtures	140.48
Interest Expense	145
Total Selling and Administrative Expenses		7,475.48
Net Income		$ 13,624.52

3.

AHH Boots Statement of Retained Earnings For the month ended September 30, 2019
Balance, September 1	$ 0
Net income for the month	13,624.52
Less: Cash dividends	(250)
Balance, September 30	13,374.52

4.

AHH Boots Balance Sheet September 30, 2019
Assets
Current Assets
Cash		34,400
Accounts Receivable		0
Inventory: BN Boots		1,980
Inventory : BLK Boots		2,580
Office Supplies		200
Shipping Supplies		50
Prepaid Rent		6,075
Prepaid Insurance		6,600
Prepaid Advertising		300
Total Current Assets			52,185
Property, Plant and Equipment
Computer Equipment	5,100
Accumulated Depreciation: Computer Equipment	(80)	5,020
Furniture and Fixtures	12,000
Accumulated Depreciation: Furniture and Fixtures	(140.48)	11,859.52
Property Plant and Equipment, net			16,879.52
Total Assets			$69,064.52
Liabilities
Current Liabilities
Notes Payable: Wells Fargo Bank		10,000
Notes Payable: Office Mart		4,125
Wages Payable		1,200
Interest Payable		100
Utilities Payable		265
Total Current Liabilities			15,690
Stockholders' Equity
Common Stock		40,000
Retained Earnings		13,374.52
Total Stockholders' Equity			53,374.52
Total Liabilities and Stockholders Equity			$69,064.52