Question

The following accounts are taken from Kijijo Riding Corp., a company that specializes in occupational therapy and horseback lessons, as of December 31. Credits KIJIJO RIDING CORP. Unadjusted Trial Balance At December 31 Account Name Debits Cash $ 69,300 Accounts Receivable 6,550 Prepaid Insurance 7.250 Equipment 68,700 Land 29,250 Accounts Payable Deferred Revenue Notes Payable (long-term) Common Stock Retained Earnings Dividends Service Revenue Salaries and wages Expense 6,450 Repairs and Maintenance Expense office Expenses 635 Totale 5188,595 $ 33,600 1,850 63,000 5,000 56,745 28,400 460 $188,595 Required:

Answer 1

Income statement Service Revenue 28,400 Less: Operating expenses Salaries and wages Reapair and Maintenance expenses office expenses 6,450 460 635 Net income before tax 20,855 Less : Tax Net income after tax 20,855

Retained Earnings Beginning Retained Earnings 56,745 Add: Net income 20,855 Less: Dividend = Ending retained Earnings 77,600

BALANCE SHEET As on 31 december Assets Current Assets Cash Account Receivables Prepaid insurance 69,300 6,550 7,250 Total current Assets Non-Current Assets Equipments Land 68,700 29,250 Total Assets 181,050

Liablities and Shareholder's Equity Liablities Short term Liablities Account payables Deffered Revenue 33,600 1,850 Long term Liablities Notes payables (long term) 63,000 Total Liablities 98,450 Shareholders Equity Common Stock Retained Earnings 5,000 77,600 Total Shareholder Equity 82,600 Total Liablities and shareholder's Equity 181,050