Question

Using the trial balance below: complete the income statement, the statement of retained earnings and a balance sheet. Johnny Dollar's Body Shop Trial Balance December 31, 2020 6500 475 2500 600 35200 Cash Accounts receivable Body shop supplies Office supples Body shop equipment Accounts payable Common stock Retained earnings Dividends Revenue earned Body shop supplies expense Office supplies expenso Rent expenso Utilities expense Wages expense 1500 10000 11775 36000 95000 3425 775 6000 4800 22000 118275 118275

Answer 1

Your answer is as :

In the books of John Dollar Baby Shop
Income Statement
Particulars	Amount
Revenue from Operation	95000
Other income	0
Total income	95000
Expenses
Dividend	36000
Body Shop Supplies Expenses	3425
office supplies Expenses	775
Rent Expenses	6000
Utilities Expense	4800
Wages Exepnse	22000
Total Exepenses	73000
Profit /(loss)	22000
T/f to retained Earning	22000

Balance Sheet
Particulars	Amount
Liabilities
Common Stock	10000
Retined Earning	33775
Account payable	1500
Total Liabilities	45275
Assets
Non Current Assets
Fixed Assets	35200
Current Assets
Inventories:Body shop supplies office supplies	3100
Cash	6500
Account Recievables	475
Total Assets	45275

Statement of retained Earning
Particulars	Amount
Opening balance	11775
Add
Profit for the year	22000
Total	33775

In the books of Pablo Management
Adjustment enrty
Date	Particulars	Debit $	Credit $
31-Dec	Wages A/c	6250
	To bank		6250
	Being wages paid to part time employees from Monday to Friday work
4-Jan	Wages A/c	5000
	To bank		5000
	(being amount paud for the last week of December)
	Alternatively
4-Jan	Wages A/C	5000
	To Salary payable		5000
	Profit and loss A/c	5000
	TO Wages		5000
	Salary payable A/c	5000
	To bank		5000