(1)
INCOME STATEMENT
Revenue | $79,540 | |
Expenses: | ||
Salary ecpenses | $50,000 | |
Rent expenses | 10,000 | |
Office expenses | 15,000 | |
Total expenses | (75,000) | |
Net income | 4,540 |
STATEMENT OF RETAINED EARNING
Retained earning (beginning) | $5,000 |
Add: Net income | 4,540 |
Retained earning (ending) | 9,540 |
BALANCE SHEET
Assets: | ||
Current assets: | ||
Cash | $15,540 | |
Account receivable | 10,000 | |
Non current assets: | ||
PPE - Equipment | 15,000 | |
Total assets | $40,540 | |
Liabilities and stockholders' equity | ||
Current liabilities: | ||
Account payable | 25,000 | |
Taxes Payable | 5,000 | |
Non current liabilities | nil | |
Total liabilities | 30,000 | |
Stockholders' equity | ||
Common shares | 1,000 | |
Retained earning | 9,540 | |
Total liabilities and stockholders' equity | 40,540 |
(2)
JOURNAL ENTRY
Event | Date | Account Details and Explanation | Debit ($) | Credit ($) |
1 | Jan. 1 | Cash | 1,000 | |
Common shares | 1,000 | |||
To record give shares in the business | ||||
2 | Jan 1 | No entry required as on January 1st | ||
3 | No entry required at the time of hiring | |||
4 | Cash | 30,000 | ||
Service revenue | 30,000 | |||
To record Services provided and payment received | ||||
5 | Jan. 31 | Training expense | 10,000 | |
Cash | ||||
To record payment made to personal trainer at $5,000 each for 2 trainer | 10,000 | |||
6 | Feb. 1 | Rent expense | 500 | |
Cash | 500 | |||
To record payment made as rent expense | ||||
7 | Feb. 28 | Cash | 25,000 | |
Account receivable | 10,000 | |||
Service revenue | 35,000 | |||
To record Services provide and partially payment received | ||||
8 | Feb 28 | Training expense | 10,000 | |
Cash | 10,000 | |||
To record payment made to personal trainer at $5,000 each for 2 trainer | ||||
9 | Mar. 1 | Rent expense | 500 | |
Cash | 500 | |||
To record payment made as rent expense | ||||
10 | Mar. 1 | Cash | ||
Account receivable | ||||
To record receiving balance amount of Services provide on February 28 | ||||
Thank you :)
Required: 1. Using the trial balance provided, prepare in good format, a statement of financial position,...
2. Prepare the required journal entries in good format below the following box of information. If no entry is required, make sure to note this. EVENT DATE TRANSACTION 1 Jan 1 You give your business $1000 for 1000 shares in the business 2 Jan 1 Your monthly rent is $500. The rent is due on the first day of each month. 3 Jan 5 You hire two personal trainers for $5000 each per month. The trainers are paid on the...
2.- Prepare the required-journal entries-in-good-format-below the following-boxof- information.---If-no-entry-is-required, make sure to note this.- 1 11 1 EVENTH DATEN TRANSACTION- 11 Jan 11 You give your business $1000 for 1000-shares in the business 201 Jan 11 Your monthly rent is $1000.--The-rent-is due on the first day of each month.-- 3 Jan 5 You-hire two personal trainers-for-$5000 each per month. The trainers-are-paid-on the last day of each month. 40 Jan-311 Company provides personal training-to-5-customers during the month. The bill to these: customers...
prepare an income statement based on the information from the trial balance Nelson Company Trial Balance 31-Jan-17 1000 12500 5800 2400 42900 Cash Merchandise Inventory Store Supplies Prepaid Insurance Store Equipment Accumulated Depreciation - SE Accounts Payable Common Stock Retained Earnings Dividends Sales Sales Discounts Sales Returns and Allowances Cost of goods sold Salaries Expense Rent Expense Advertising Expense Total 15250 10000 5000 27000 2200 111950 2000 2200 38400 35000 15000 9800 169200 169200
5. Prepare an Income Statement and a Balance Sheet from a trial balance. Using the information from the trial balance of Barger Company, prepare an income statement and balance sheet. (Hint: Prepare the income statement first, then separately calculate ending retained earnings, and lastly prepare the balance sheet) Debit Credit Cash 16,000 Accounts Receivable 14,000 Prepaid Rent Land 10,000 30,000 10,000 5,000 15,000 38,000 12,000 Unearned Revenue Salaries Payable Common Stock Beginning Retained Earnings Service Revenue Salaries Expense Rent Expense...
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BUSINESS TRANSACTIONS for the MONTH of January 2020. Prepare the Trial Balance with month End Balance 1) Jan-1 The JW-Corp Received $120,000 from Investors in Exchange for 6,000 shares of Common Stock. 2) Jan-2 JW-Corp Borrowed $150,000 from SCHWAB BANK and signed a Note Due in 24 months. 3) Jan-3 JW Corp purchased Office Equipment worth $120,000 (5 year life), with a $40,000 Down payment of Cash and the remainder Due on account to Target-Corp within 9 Months. 4) Jan-4...
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