Question

Question 7 of 13 View Policies Current Attempt in Progress The adjusted trial balance of Sunland Financial Planners appears below. Credit SUNLAND FINANCIAL PLANNERS Adjusted Trial Balance December 31, 2020 Debit Cash $3,750 Accounts Receivable 2.100 Supplies 1,700 Equipment 16,800 Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Dividends 3,100 Service Revenue Supplies Expense 560 Depreciation Expense 2,600 Rent Expense 2,850 $33,460 $4,200 4,150 5,860 10,000 4,350 4,900 $33,460 Using the information from the adjusted trial balance, you are to prepare for the month ending De 1. An income statement. (Enter negative amounts using either a negative sign preceding the number eg. SUNLAND FINANCIAL PLANNERS Income Statement

Answer 1

Requirement 1:

SUNLAND FINANCIAL PLANNERS
Income statement
For the Year Ended December 31, 2020
Revenue
Service revenue		$    4,900
Expenses:
Supplies expense	$        560
Depreciation expense	$     2,600
Rent expense	$     2,850
Total Expense		$    6,010
Net Income		$ (1,110)

Requirement 2:

SUNLAND FINANCIAL PLANNERS
Retained Earnings Statement
For the Year Ended December 31, 2020
Beginning Balance		$ 4,350
Less:
Net loss	$    (1,110)
Dividends	$    (3,100)	$ (4,210)
Retained Earnings Closing Balance		$       140

Requirement 3:

SUNLAND FINANCIAL PLANNERS
Balance sheet
For the Year Ended December 31, 2020
Assets
Cash		$         3,750
Accounts Receivable		$         2,100
Supplies		$         1,700
Equipment	$ 16,800
Less: Accumulated depreciation	$ (4,200)	$      12,600
Total Assets		$      20,150
Liabilities and stockholder's Equity
Current liabilities:
Accounts Payable	$    4,150
Unearned service revenue	$    5,860
Total current liabilities		$      10,010
Shareholders equity:
Common stock	$ 10,000
Retained earnings	$       140
		$      10,140
Total liabilities and shareholders equity		$      20,150