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Preparation of financial statements
Using the Adjusted Trial Balance shown below, prepare the companys:
(a) Income Statement
(b) Statement of Retained Earnings
(c) Balance Sheet
by completing the tables provided on the following pages.
| Repair Shop Adjusted Trial Balance Dec. 31, 2016 |
| | Debit | Credit |
| Cash | $ 30,000 | |
| Supplies | 2,000 | |
| Accounts Receivable | 70,000 | |
| Equipment | 30,000 | |
| Accumulated Depreciation on Equipment | | $ 10,000 |
| Accounts Payable | | 20,000 |
| Notes Payable | | 5,000 |
| Income Taxes Payable | | 20,000 |
| Capital Stock | | 30,000 |
| Retained Earnings (as of Jan 1, 2016) | | 10,000 |
| Dividends | 15,000 | |
| Repair Service Sales Revenue | | 130,000 |
| Wages Expense | 40,000 | |
| Rent Expense | 10,000 | |
| Supplies Expense | 4,000 | |
| Utilities Expense | 3,000 | |
| Depreciation Expense | 1,000 | |
| Income Tax Expense | 20,000 | ______ |
| | 225,000 | 225,000 |
a.)
| Repair Shop Income Statement For the year ending Dec. 31, 2016 |
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b.)
| Repair Shop Statement of Retained For the year ending Dec. 31, 2016 |
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c.)
| Repair Shop Balance Sheet As of Dec. 31, 2016 |
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Answer & Explanation
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