Question

SRS Consulting Services Unadjusted Trial Balance 30-Sep-19 $ Account Cash 15,000 Accounts Receivable 11,200 Supplies 1,350 Prepaid Insurance 3,000 Long Term Investments 20,000 Equipment 39,100 Accumulated Depreciation-Equipment 8,100 Accounts Payable 9,500 Uncarned Revenue 1,900 Notes Payable 30,000 Common Stock 25,000 Retained Earnings 4,700 Dividends 5,000 Revenue 24,000 Depreciation 3,300 Salaries Expense 4,650 Insurance expense 600 Totals $ 103,200 $ 103,200 a. An inventory of supplies shows $650 on hand at 9/30/19 b. The insurance policy was purchased on July 1 for $3,600. The policy's term is one year. The insurance expired ("used up") for September has not been recorded. c. Depreciation on equipment for the year totals $3,600. d. Previously recorded Unearned Revenue earned during September, $1,000. e. SRS's Note Payable is due in full on August 31, 2020. The interest accrued for September is $200 and is payable on October 4. f. SRS pays its employees biweekly. The last paycheck received by its employees was on September 25th Salaries accrued to September 30th are $600. g. Corporate income tax for the year is estimated to be $3,900. 1. Prepare an income Statement for the year ended Sept. 30, 2019 in proper form. (Don't forget the proper date). 2. Prepare a Statement of Retained Earning in proper form with proper dating. 3. Prepare a classified Balance Sheet in proper form with proper dating.

please break down each item line when creating the income statement , retained earning statemend and classified balance statement

Answer 1

Requirement:1

SRS Consulting Services
Income statement
For the Year Ended September 30, 2019
Revenue
Revenue		$         25,000
Total Revenue (A)		$         25,000
Expenses:
Depreciation Expense	$                    3,600
Salaries expense	$                    5,250
Supplies Expense	$                        700
Interest expense	$                        200
Insurance Expense	$                    1,500
Total Expense (B)		$         11,250
Net Income (A-B)		$         13,750
Tax		$           3,900
Net Income after tax		$           9,850

Working:

SRS Consulting Services
Income statement
For the Year Ended September 30, 2019
Revenue
Revenue		24000+1000
Total Revenue (A)		$                    -
Expenses:
Depreciation Expense	3300+300
Salaries expense	4650+600
Supplies Expense	$                            700
Interest expense	$                            200
Insurance Expense	600+(3600/12*3)
Total Expense (B)		$         11,250
Net Income (A-B)		$         13,750
Tax		$           3,900
Net Income after tax		$           9,850

Requirement:2

SRS Consulting Services
Retained Earnings Statement
For the Year Ended September 30, 2019
Beginning Balance	$                 4,700
Add:Net Income	$                 9,850
Less: Dividends	$              (5,000)
Retained Earnings Closing Balance	$                 9,550

Requirement:3

SRS Consulting Services
Balance sheet
For the Year Ended September 30, 2019
Assets			Liabilities
Current assets:			Current liabilities:
Cash		$        11,100	Account Payable	$               9,500
Accounts Receivable		$        11,200	Unearned Service Revenue	$                  900
Supplies		$              650	Interest Payable	$                  200
Prepaid Insurance		$          2,100	Salaries and wages Payable	$                  600
Total current assets		$        25,050	Notes payable	$            30,000
			Total current liabilties	$            41,200
Long Term Investments		$        20,000
Property,plant, and equipment:
Equipment	$   39,100		Stockholders` Equity
Less: Accumulated Depreciation	$   (8,400)		Common Stock	$            25,000
Net Equipment		$        30,700	Retained Earnings	$               9,550
Total Long-term assets		$        50,700	Total stockholders` equity	$            34,550
Total Assets		$        75,750	Total liabilties and stockholders` equity	$            75,750

Working:

SRS Consulting Services
Balance sheet
For the Year Ended September 30, 2019
Assets			Liabilities
Current assets:			Current liabilities:
Cash		15000-3900	Account Payable	$               9,500
Accounts Receivable		$        11,200	Unearned Service Revenue	1900-1000
Supplies		1350-700	Interest Payable	$                  200
Prepaid Insurance		3000-900	Salaries and wages Payable	$                  600
Total current assets		$        25,050	Notes payable	$            30,000
			Total current liabilties	$            41,200
Long Term Investments		$        20,000
Property,plant, and equipment:
Equipment	$   39,100		Stockholders` Equity
Less: Accumulated Depreciation	8100+300		Common Stock	$            25,000
Net Equipment		$        30,700	Retained Earnings	$               9,550
Total Long-term assets		$        50,700	Total stockholders` equity	$            34,550
Total Assets		$        75,750	Total liabilties and stockholders` equity	$            75,750