Question

Styles MODULE 2 FINANCIAL STATEMENTS Below is the adjusted trial balance for Shady's Illusions. Use this information to prepare Shady's. INCOME STATEMENT and BALANCE SHEET for the year. No. 101 Credit I 109 111 Debit 158,000 25,000 80,000 112 200 201 Account title Cash Office Supplies Equipment Accumulated Depreciation--Equipment Accounts Payable Wages Payable S. Shady, Capital S. Shady, Withdrawals Entertainment Revenue Rent Expense Gas and Oil Expense Wages Expense Depreciation Expense-Equipment Legal Expense Totals 44,000 33,000 12,000 129,700 300 301 25,000 400 228,000 510 511 512 513 26,800 3,000 105,000 12,500 11,400 446.700 514 446.700

Answer 1

$ $ 228,000 Income Statement Shady's Income Statement Income Statement Particulars $ Entertainment Revenue Expenses : Rent Expense $ 26,800 Gas and Oil Expense $ 3,000 Wages Expense $ 105,000 Depreciation Expense - Equipment $ 12,500 Legal Expense $ 11,400 Total Expenses Net Income $ $ 158,700 69,300 Balance Sheet Shady's Balance Sheet Balance Sheet August 31, 2019 $ Assets Particulars $ $ Current Assets - Cash - Office Supplies Total Current Assets AA $ $ 158,000 25,000 $ 183,000 $ $ Property, Plant and Equipment - Equipment - Less : Accumulated Depreciation - Book Value, Office Equipment Total Property, Plant and Equipment Total Assets 80,000 (44,000) $ 36,000 $ $ 36,000 219,000

Liabilities Current Liabilities : - Accounts Payables - Wages Payables Total Liabilities $ $ 33,000 12,000 $ 45,000 Stockholders' Equity - S. Shady Capital - S. Shady Withdrawals - Add : Net Income Total Stockholders' Equity A A A 129,700 (25,000) 69,300 $ 174,000 Total Liabilities and Stockholders' Equity $ 219,000