Question

Required information Problem 3-4A Interpreting unadjusted and adjusted trial balances, and preparing financial statements LO P1, P2, P3, P4, P5, P6 The following information applies to the questions displayed below.) A six-column table for JKL Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31. The last two columns contain the adjusted trial balance as of the same date. Unadjusted Trial Balance $ 92,680 12.000 17.200 6,90 88,000 $ 24,000 9.100 Mccounts receivable office supplies Prepaid Insurance Office equipment Accu. Depreciation office equip. Recounts payable Interest payable Salaries payable Unearned consulting fees Long-ter notes payable J. Logan, Capital J. Logan, withdrawala Consulting fees earned Depreciation expense office equip. Adjusted Trial Balance $ 92,680 21.500 7,500 2,960 88,000 $ 36,000 14.000 3.000 5.000 13,000 52.000 54.000 9,000 178,500 12,000 72,250 20,000 52.000 54,000 9.000 162,000 67.250 1.210 14,640 office supplies expense Advertising expense 3,980 14,640 9.700 17,080 $ 355,500 $ 321,100 $321,100 $355,500 Problem 3-4A Part 2 2(a-1) Prepare JKL Company's income statement for the year ended July 31 2(0-2) Prepare JKL Company's statement of owner's equity for the year ended July 31. Note: J. Logan, Capital at July 31 of the prior year was $54,000, and the current year withdrawals were $9.000. 2[b) Prepare JKL Company's the balance sheet as of July 31. Complete this question by entering your answers in the tabs below. Reg 21 Reg 212 28 Prepare JKL Company's income statement for the year ended July 31. JKL COMPANY Income Statement For Year Ended July 31

Answer 1

2	Use adjusted trial balance figure
a-1.			Income statement
						$	$
	Revenues:
	Consulting fees earned				a		178500
	Less: Expenses
	Depreciation expense-Office equip.					12000
	Salaries expense					72250
	Interest expense					4210
	Insurance expense					3980
	Rent expense					14640
	Office supplies expense					9700
	Advertising expense					17080
	Total expenses				b		133860
	Net income				a-b		44640
a-2.		Statement of owner's equity
						$
	Beginning balance					54000
	Add:Net income					44640
						98640
	Less: withdrawals					9000
	Ending balance					89640
b.		Balance sheet
		Assets
						$	$
	Current assets:
	Cash					92680
	Accounts receivable					21500
	Office supplies					7500
	Prepaid insurance					2960
	Total current assets						124640
	Property,plant and equipment:
	Office equipment					88000
	Less: Accum. Depreciation-Office equip.					36000	52000
	Total assets						176640
		Liabilities and owner's equity
	Current liabilities:
	Accounts payable					14000
	Interest payable					3000
	Salaries payable					5000
	Unearned consulting fees					13000
	Total current liabilities				a		35000
	Long-term liabilities:
	Long-term notes payable				b		52000
	Total liabilities				c=a+b		87000
	Owner's equity:
	J.Logan, capital				d		89640
	Total liabilities and owner's equity				c+d		176640