Question

Note: Exerise E420 should be wsed only gfer completing Exercise EA.I9 E4-20 Preparing financial statements from the completed worksheet 220 chapter 4 Use your answer from Exercise E4-19 to prepare Data Solution's financial s 2 Ending Capital $34.550 Requirements 1. Complete the income statement 2. Complete the statement of owner's equity for the month ended No for the month ended November 30, 2018 November 30, during the month 2018. Assume there were no contributions made by the owner J. Complete the clasfied balance shet as of November 30, 2018. Use the report Son E4-21 Preparing closing entries from an adjusted trial balance Learning Objective 3 The adjusted trial balance of Stone Sign Company follows: STONE SIGN COMPANY Adjusted Trial Balance January 31, 2018 Balance Debit Credit Account Title Cash Office Supplies Prepaid Rent Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Stone, Capital Stone, Withdrawal Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Supplies Expense Utilities Expense Total $ 15,400 1,500 1,400 60,000 s 7,000 3,800 100 4,200 4,300 48,800 800 17,300 3,700 1,400 400 300 600 $85,500 $ 85,500 Requirements 1. Asume Stone Sign Company has a January 31 year end. Journalize Stones entries at January 31. 2. How much net income or Stone's closing ended January 31P H net loss did Stone Sign Company earn f How can you tell? r the year

Answer 1

E4-21)

1)

Date	Account	Debit	credit
jan 31	service revenue	17300
	Income summary		17300
	[To close revenue]
Jan 31	Income summary	6400
	salaries expense		3700
	Rent expense		1400
	Depreciation expense-equipment		400
	supplies expense		300
	utilities expense		600
	[To close expense]
jan 31	Income summary	10900
	stone's capital		10900
	[to close net income] [17300-6400]
jan31	stone 's capital	800
	stone's withdrawls		800
	[to close drawings]

2)

Net INcome : 10900

since the amount credited to income summary is higher than amount debited to income summary ,it means revenue is more than expense resulting in net income of 10900