Question

Required: 1. Using the trial balance provided, prepare in good format, a statement of financial position, statement of retained earnings and a statement of income. Fruit Theory Fitness Trial balance For the period ending December 31, 2020 Debit Credit I $15540 10000 15000 Cash Accounts receivable PPE - Equipment Accounts payable Taxes payable Retained earnings Common shares Revenues Salaries expense Rent expense Office expense $25000 5000 5000 1000 79540 50000 10000 15000 Totals $115,540 $115,540 Type up your required statements below. Add as much space as you need. Do NOT type them in excel and then cut and paste them into this space.

Answer 1

(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 :)