Question 2:
On September 30, 2017, the Radison Avenue Incorporatedpost-closing trial balance was as follows. The company adjusts itsaccounts monthly.
Account | Debit | Credit |
Cash | 16,500 | |
Accounts Receivable | 14,200 | |
Supplies | 3,300 | |
Equipment | 17,900 | |
Accumulated Depreciation – Equipment | | 4,550 |
Accounts Payable | | 3,200 |
Salaries Payable | | 1,800 |
Unearned Revenue | | 850 |
Common Shares | | 9,100 |
Retained Earnings | | 32,400 |
| $51,900 | $51,900 |
During October, the following transactions were completed:
Paid $2,300 to employees for salaries due, of which $1,800 isfor September salaries payable and $500 for October
Issued common shares for $4,800
Received $11,200 cash from customers in payment of accounts
Received $12,700 cash for services performed in OctoberPurchased supplies on account, $675
Paid creditors $3,200 of accounts payable due
Paid October rent, $550
Paid salaries, $2,150
Performed services on account, $3,200
Paid a cash dividend, $600
Received $1,350 from customers for services to be provided inthe future
Adjustment data for the month:
Accrued salaries payable are $1,100
Unearned revenue of $850 was earned during the month
Income tax payable is estimated to be $600
Required:
In good format, and making whatever assumption you feelappropriate, prepare an accrual-based Income Statement andStatement of Financial Position (Balance Sheet) for the monthending October 2017.
