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adjusted trail balance, prepare an Income Statement, Owners Equity Statement, and CLASSIFIED Balance Sheet for the month end
1 A. BI U x iii III % Prepare an Income Statement
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Answer #1
Trent Company
Income Statement
For the month ended Dec. 31
Revenues:
Service revenue $ 25,000
Expenses:
Advertising expense $ 1,400
Depreciation expense $ 7,000
Salary Expense $ 3,000
Insurance Expense $ 1,600
Rent Expense $ 800
Total expenses $ 13,800
Net income $ 11,200
Trent Company
Statement of Owner's Equity
For the month ended Dec. 31
Trent Capital, Beginning $ 24,000
Add: Net income $ 11,200
Less: Drawings ($ 1,500)
Changes in Equity $ 9,700
Trent Capital, Ending $ 33,700
Trent Company
Balance Sheet
For the month ended Dec. 31
Assets Liabilities
Current Assets: Current liabilities:
Cash $ 12,700 Accounts payable $ 10,000
Accounts receivable $ 20,000 Unearned revenue $ 16,000
Prepaid Insurance $ 15,000 Total current liabilities: $ 26,000
Total current assets $ 47,700 Notes payable $ 9,000
Total liabilities $ 35,000
Property, plant and equipment:
Equipment $ 35,000
(Less): Accumulated depreciation-equipment ($ 14,000) Owner's equity
Total property, plant and equipment $ 21,000 Trent, Capital $ 33,700
Total assets $ 68,700 Total liabilities and owner's equity $ 68,700
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