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Problem 3-4A Interpreting unadjusted and adjusted trial balances, and preparing financial statements LO C3, A1, P1, P2, P3

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A six-column table for JKL Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31, 2017. The last two columns contain the adjusted trial balance as of the same date.

	Unadjusted Trial Balance					Adjusted Trial Balance
Cash	$	121,140				$	121,140
Accounts receivable		9,000					18,000
Office supplies		16,600					4,500
Prepaid insurance		10,240					2,960
Office equipment		85,000					85,000
Accum. Depreciation—Office equip.			$	24,000				$	36,000
Accounts payable				10,100					24,000
Interest payable				0					2,000
Salaries payable				0					7,000
Unearned consulting fees				32,000					13,000
Long-term notes payable				56,000					56,000
J. Logan, Capital				58,000					58,000
J. Logan, Withdrawals		9,500					9,500
Consulting fees earned				167,000					195,000
Depreciation expense—Office equip.		0					12,000
Salaries expense		67,150					74,150
Interest expense		1,230					3,230
Insurance expense		0					7,280
Rent expense		14,780					14,780
Office supplies expense		0					12,100
Advertising expense		12,460					26,360
Totals	$	347,100	$	347,100		$	391,000	$	391,000

Problem 3-4A Part 2

2(a-1) Prepare JKL Company's income statement for the year ended July 31, 2017.
2(a-2) Prepare JKL Company's statement of owner’s equity for the year ended July 31, 2017. Note: J. Logan, Capital at July 31, 2016, was $58,000, and the current-year withdrawals were $9,500.
2(b) Prepare JKL Company's the balance sheet as of July 31, 2017.

Answer 1

Ans 2(a-1) JKL Company Income Statement for the three month ended July 31, 2017 Particulars Amount Amount Consulting fees earned $195,000 Less: Expenses Depreciation expense-Office equip $12,000 Salaries expense $74,150 $3,230 Interest expense $7,280 Insurance expense $14,780 $12,100 Rent expense Office supplies expense Advertising expense Total Expense Net Income /(Loss) $26,360 ($149,900) $45,100 Ans 2(a-2) JKL Company Statement of Owners' Equity for the year ended December 31, 2017 Particulars Amount Beginning CapitalBalance Add: Net Income/(Loss) Less Withdrawal $58,000 $45,100 ($9,500) Ending Capital Balance $93,600

Ans 2(b) JKL Company Balance Sheet as of July 31, 2017 Liabilities Assets Amount Amount Amount Amount Current Assets Current Liabilities $24,000 $2,000 $7,000 $13,000 $121,140 $18,000 Accounts Payable Cash Account Receivable Interest Payable Salaries Payable Unearned Consulting Fees Office Supplies $4,500 $2,960 Prepaid Insurance Total Current Liabilities $46,000 Total Current Assets $146,600 Long Term Notes Payable $56,000 Property, Plant & Equipment Office Equipment Less: Accumulated Deprecation Office Equipment Net Property, Plant & Equipment $85,000 Total Liabilities $102.000 ($36,000) $49,000 Owners' Equity Capital $93.600 $195,600 Total Liabilities & Owners' Equity Total Assets $195,600