Question

Prepare trial balan statements F2.17 (LO 4) AP A list of accounts and their balances of O'Neill's Psychological Services, at its year end July 31, 2021, is presented below. Supplies $ 790 Notes Payable $22.960 Unearned Revenue 1,350 Salaries Expense 45.540 Supplies Expense 5,960 T. O'Neill. Drawings 57.980 Cash 6.470 Equipment 58,900 Accounts Receivable 7,310 T. O'Neill. Capital 64,340 Accounts Payable 9,030 Service Revenue 96,180 Rent Expense 10.880 Instructions a. Prepare a trial balance in financial statement order. b. Prepare an income statement, statement of owner's equity, and balance sheet. TEI

Answer 1

SOLUTION : A)
	Debit	Credit
Supplies	$                            790
Unearned Revenue		$                        1,350
Supplied Expenses	$                         5,960
Cash	$                         6,470
Account Receivable	$                         7,340
Account Payable		$                        9,030
Rent Expenses	$                      10,880
Notes Payable		$                     22,960
Salaries Expenses	$                      45,540
T.O. Nell Drawings	$                      57,980
Equipment	$                      58,900
T.O. Nell Capital		$                     64,340
Service Revenue		$                     96,180
	$                   1,93,860	$                  1,93,860
SOLUTION : B)
INCOME STATEMENT
Revenue :
Service Revenue		$                     96,180
Less: Expenses
Supplied Expenses	$                         5,960
Rent Expenses	$                      10,880
Salaries Expenses	$                      45,540
Total Expenses		$                     62,380
Net Income		$                     33,800
STATEMENT OF OWNER'S EQUITY
PARTICULARS	AMOUNT
Opening Balance of Caital	$                      64,340
Add: Net Income of the year	$                      33,800
Total	$                      98,140
Less: Drawings	$                      57,980
Closing Capital of T'O Neill Capital	$                      40,160
BALANCE SHEET
ASSETS	AMOUNT	AMOUNT	LIABILITIES & SHAREHOLDER'S EQUITY	AMOUNT	AMOUNT
CURRENT ASSETS:			CURRENT LIABILITIES:
Cash	$                         6,470		Account Payable	$                         9,030
Account Receivable	$                         7,340		Notes Payable	$                       22,960
Supplies	$                            790		Unearned Revenue	$                         1,350
		$                     14,600			$               33,340
FIXED ASSETS:			Ower's Equity
Equipment		$                     58,900	T'O Neill Capital		$               40,160
TOTAL OF ASSETS		$                     73,500	TOTAL OF LIABILITES & SAHREHOLDER'S EQUITY		$               73,500