Question

Section B: Short Question [SK1: 5 marks 1 x 5 marks] B1 - The following is the trial balance of Star Company on December 31st, 2019: Star Company Trial Balance December 31st, 2019 Debit Credit $500,000 175,000 200,000 500,000 375,000 Cash Accounts Receivable Supplies Equipment Furniture Accounts Payable Star, Capital Star, Drawings $150,000 1,400,000 50,000 Service Revenue Salaries Expense Advertising Expense Rent Expense Utilities Expense 750,000 250,000 75,000 125,000 50,000 2,300,000 2,300,000 Total Required: Prepare the financial statements of Star Company on December 31st, 2019. [SK1: 5 marks]

Answer 1

Stay company Income Statement for the year Ended Dec 31 2019 Revenue : service Revenue $ 750,000 Expenses: salaries expense Advertising Expense Rent Expense Utilities Expense TOTCH Expense - Net Income $ 250,000 75000 125000 50,000 (500,000) $ 250,000 star company owner's capital alca for the year Ended Dec 31st 2019 star capital (Beginnity) $ 14,00.000 Add: Net Income 250,000 Less: Dag wings (50,000) star capire cending bal.) $ 1600,000 Assets cash stor company Balance sheet As of Der 3st 2019 Amoun) Liability & Equity Amount SO0000 Liability II 5000 Accounts payable $150,000 200 000 500,000 owners Equity 375ooo star capitoy. 1600,000 17,50,000 Toro liability e Equity $17,50,000 AICReceivable supplies Equipment Furniture TOTOJ Assets