Question

1 Angela Lopez owns and manages a consulting firm called Metrix, which began operations on March 1. On March 31, Metrix shows the following selected accounts and amounts for the month of March $2,500 1.500 600 8 01:20 Equipment Salaries expense Consulting revenge Cash Utilities expense Note payable Accounts receivable Common stock Dividende 2,000 $ 9.000 4,000 17,000 10,000 400 3.400 4,500 15,600 3.000 Office supplies Rental revenue Advertising expense Prepaid insurance Accounts payable Note receivable Rent expense Unearned revenue 3,000 500 Required: 1. Prepare a March income statement for the business. 2. Prepare a March statement of retained earnings. The Retained Earnings account balance at March I was so 3. Prepare a March 31 balance sheet. Hunt Use the Retained Earnings account balance calculated in part 2

Answer 1

Please hit LIKE button if this helped. Angela Lopez Adjusting Entries: 1. Income Statement $ 5,900 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciatione expense) $ 5,900 $ 17,000 $ 1,500 $ 18,500 b $ 1,850 Consulting Revenue Rental Revenue Total Revenue Salaries Expense Utilities Expense Advertising Expense Rent Expense Total Expense Net Income Insurance Expense Prepaid Insurance (To record expired insurance) $2,900-$1,050 $ 1,850 $ 4,000 $ 400 $ 600 $ 3,000 с $ 1,900 Unearned Revenue Consultancy Revenue (To record revenue earned) $5,700*1/3 $ -8,000 $ 10,500 $ 1,900 2. Statement of Retained Earning d $ 2,100 Wages Expense Wages Payable (To record wages expense) $ 2,100 - Beginning Balance add: Net Income Less: Dividend Ending Balance $ $ 10,500 $ -3,000 $ 7,500 $ 490 Interest Receivable Interest Revenue (To record interest earned) $ 490 $ 10,000 $ 4,500 $ 2,000 $ 2,500 $ 3,500 $ 9,000 $ 31,500 3. Balance Sheet Assets: Cash Accounts Receivable Prepaid Insurance Office Supplies Note Receivable Equipment Total Assets Liabilities: Accounts Payable Unearned Revenue Note Payable Total Liabilties Stockholder's Equity: Common Stock Retained Earning Total Stockholder's Equity Total Liabilities and Equity $ 4,500 $ 500 $ 3,400 $ 8,400 $ 15,600 $ 7,500 $ 23,100 $ 31,500