Question

These accounts and balances are taken from the financial statements of Ayayai Corporation for the year ended December 31, 2022. Retained earnings, January 1 Utilities expense Equipment Accounts payable Income tax payable Cash Salaries payable Common shares January 1 Dividends declared Service revenue Prepaid insurance Repair and maintenance expense Depreciation expense Accounts receivable Insurance expense Salaries expense $26,000 2,000 71,000 11.200 2.100 7.900 3.000 13.000 7,000 67.000 3.500 1.800 3.300 14.200 2.200 27.500

Answer 1

AYAYAI CORPORATION Trial Balance December 31, 2022 Account Title Amount ($) Amount ($) Retained Earning 26000 Utilities Expense 2000 Equipment 71000 Account Payable 11200 Income tax Payable 2100 Cash 7900 Salaries payable 3000 Common Stock 13000 Dividends 7000 Service Revenue 67000 Prepaid Insurance 3500 Repairs and maintenance Expense 1800 Depreciation Expense 3300 Account Receivable 14200 Insurance Expense 2200 Salaries Expense 27500 Income tax expense 4500 Accumulated Depreciation - Equipment 17600 Total 144900 139900 Diffrence 5000

AYAYAI CORPORATION Statement of Changes in Equity For the year ended December 31,2022 Common Stock Retained Earnings Total Equity Balance January 1 13000 26000 39000 Net Income for the year 25700 25700 Dividends -7000 -7000 Balance December 31, 2022 13000 44700 57700

AYAYAI CORPORATION Income Statement For the year ended December 31,2022 Amount ($) Amount ($) Revenue Service Revenue 67000 Expense Utilities Expense Salaries Expense Repairs and maintenance Expense Depreciation Expense Income tax expense Insurance Expense Total Expense 2000 27500 1800 3300 4500 2200 41300 Net Income 25700

Amount ($) 25600 53400 79000 AYAYAI CORPORATION Balance sheet For the year ended December 31,2022 Asset Amount ($) Current Asset Cash 7900 Account Receivable 14200 Prepaid Insurance 3500 Total Current asset Equipment 71000 Less : Accumulated Depreciation - Equipment -17600 Total Assets Liabilities and Stockholders' Equity Current Liabilities Account Payable 11200 Income tax Payable 2100 Salaries payable 3000 Total Current Liabilities Long term Liabilities Note payable Stockholders' Equity Common Stock 13000 Retained Earning 44700 Total stockholders' equity Total liabilities and stockholders' equity 16300 57700 74000 $ 5000 diffrence in Balancesheet due to the trial balance is not equal in the question

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