Question

Question 2 [70 points) Hector Mendez started Holden Corp. on August 1, 2014. The adjusted trial balance shown below has been prepared for Holden Corp. as of August 31, 2014 Use this information to prepare the income statement and statement of changes in equity for the month ended August 31 along with the August 31 balance sheet. In addition to this, complete the adjusted trial balance by filling out the Adjustments column. Holden Corp. Tral Balance August 31, 2014 Unadjusted Thal Balance Dr. Cr. 5,740 9.630 3,630 Adjusted Trial Balance Adjustments 5,740 9.900 2.540 14510 3,330 2,540 130 7,340 Cash Rent receivable Prepaid insurance Prepaid interest Building Accumulated depreciation, building Salaries payable Uneamed consulting revenue Unearned rent Share capital Dividends Retained earnings Consulting revenue amned Rent earned Interest and Depreciation expense, building 1.510 OP 1,519 4,680 8,360 3,770 17,450 12,320 17.450 13,030 3,900 Interest expense Insurance expense 12.790 3,900 1220 57.730 57.730 58,370 58.370 Balance Sheet Income Statement select one

Answer 1

Adjusted Trial Balance:
Accounts	Unadj. Trial balance		Adjustments		Adjusted Trial Balance
	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	5740				5740
Rent receivable	9630		270		9900
Prepaid insurance	3630			300	3330
Prepaid interest	2540				2540
Building	14510				14510
Acc Dep - buildg		0		130		130
Salaries payable		7340		240		7580
Unearned consulting Rev.		1510				1510
Unearned rent		5150	470			4680
Share capital		8360				8360
Dividends	3770				3770
Retained earnings		0				0
Consulting revenue earned		17450				17450
Rent earned		12320		740		13060
Interest earned		5600				5600
Depreciation exp.-buildg	0		130		130
Salaries expense	12790		240		13030
Interest expense	3900				3900
Insurance expense	1220		300		1520
Total	57730	57730	1410	1410	58370	58370
Income Statement:
	Amount $
Consulting revenue earned	17450
Rent earned	13060
Interest earned	5600
Total Revenue	36110
Less:Expenses:
Depreciation exp.-buildg	130
Salaries expense	13030
Interest expense	3900
Insurance expense	1520
Total Expenses	18580
Net Income	17530
Statement of Changes in Equity:
	Share Capital	Retained Earnings	Total
OB	8360	0	8360
Net Income		17530	17530
Dividends paid		-3770	-3770
Closing Balance	8360	13760	22120
Balance Sheet:
Assets:	Amount $
Cash	5740
Rent receivable	9900
Prepaid insurance	3330
Prepaid interest	2540
Current Assets	21510
Building	14510
Acc Dep - buildg	-130
Total Assets	35890
Liabilities & SH. Equity:	Amount $
Salaries payable	7580
Unearned consulting Rev.	1510
Unearned rent	4680
Current Liabilities	13770
Stockholders' Equity	22120
Total Liabilities & SH. Equity	35890