Question

Prepare trial balance and financial statements EZT (LO 4) AP A list of accounts and their balances of O'Neill's Psychological Services, at its year end July 31, 2021, is presented below. Supplies $ 790 Notes Payable $22.960 Unearned Revenue 1,350 Salaries Expense 45,540 Supplies Expense 5,960 T. O'Neill, Drawings 57.980 Cash 6,470 • Equipment 58,900 Accounts Receivable 7,340 T. O'Neill, Capital 64,340 Accounts Payable 9,030 Service Revenue 96,180 Rent Expense 10,880 Instructions a. Prepare a trial balance in financial statement order. b. Prepare an income statement, statement of owner's equity, and balance sheet.

Answer 1

Credit O'NEILL'S PSYCHOLOGICAL SERVICES Trial Balance July 31, 2021 Debit Cash $6,470 Accounts receivable 7,340 Supplies 790 Equipment 58,900 Accounts payable Unearned revenue Notes payable T. O'Neill, capital T. O'Neill, drawings 57,980 Service revenue Salaries expense 45,540 Rent expense 10,880 Supplies expense 5,960 Totals $193,860 $9,030 1,350 22,960 64,340 96,180 $193,860

O'NEILL'S PSYCHOLOGICAL SERVICES Income Statement For the Year Ended July 31, 2021 $96,180 Revenues Service revenue Expenses Salaries expense Rent expense Supplies expense Total expenses Net Income (Loss) $45,540 10,880 5,960 62,380 $33,800 O'NEILL'S PSYCHOLOGICAL SERVICES Statement of Owner's For the Year Ended July 31, 2021 T. O'Neill, capital, August 1, 2020 Add: Net incomel (Loss) $64,340 33,800 98,140 57,980 $40,160 Less: Drawings T. O'Neill, capital, July 31, 2021

$6,470 7.340 790 58,900 $73,500 O'NEILL'S PSYCHOLOGICAL SERVICES Balance Sheet July 31, 2021 Assets Cash Accounts receivable Supplies Equipment Total Assets Liabilities and Owner's Equity Liabilities Accounts payable Unearned revenue Notes payable Total Liabilities Owner's equity T. O'Neill, capital Total Liabilities and Owner's Equity $9,030 1,350 22,960 33,340 40,160 $73,500