Question

The adjusted trial balance of C.S. Financial Planners appears below. Credit C.S. Financial Planners Adjusted Trial Balance December 31, 2018 Debit Cash $4,900 Accounts Receivable 2,200 Supplies 1,800 Equipment 15,000 Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Dividends 2,500 Service Revenue Supplies Expense 600 Depreciation Expense 2,500 Rent Expense 2,400 $31,900 $4,000 3,300 6,000 10,000 4,400 4,200 $31,900 Using the information from the adjusted trial balance, you are to prepare for the month ending December 31, 2018:

Answer 1

Solution:

1)

C.S Financial planners Income statement for the month ended December 31,2018
Particulars		Amount
Service revenue		$4,200
Less: expenses
Supplies expenses	$600
Rent expenses	$2,400
Depreciation expenses	$2,500
Total expenses		($5,500)
Net loss		($1,300)

2)

C.S Financial planners Statement of retained earnings for the month ended December 31,2018
Particulars	Amount
Opening balance of retained earnings	$4,400
Add: net income	($1,300)
Less: Dividends	($,2500)
retained earnings	$600

3)

C.S Financial planners Balance sheet As at December 31,2018
Particulars	Amount	Amount
Assets
Non current assets
Equipment	$15,000
Less: Accumulated depreciation	($,4000)	$11,000
Current assets:
Cash	$4,900
Accounts receivable	$2,200
supplies	$1,800	$8,900
Total assets		$19,900
Laibilities:
Shareholder's equity:
Common stock	$10,000
Retained earnings	$600	$10,600
Current liabilities:
Accounts payable	$3,300
Unearned service revenue	$6,000	$9,300
Total shareholder's equity and liabilities		$19,900

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