Question

Below is an alphabetical listing of all the accounts for T.O.'s Dance studio on 12/31/11. Assume all adjustments have been made and all balances are "normal." Accounts payable 3,000 Accounts receivable 8,000 accumulated depreciation-Equip. 3,000 Contributed capital 2,000 Cash 5,000 Depreciation expense 1,000 Dividends declared 1,000 Equipment 9,000 Income Tax expense 1,000 Income Taxes Payable 1,000 Service Revenue 18,000 Rent Expense 2,000 Retained Earnings(as of 1/1/11) 3,000 Unearned Revenue 1,000 wage expenses 4,000. Now prepare an Income Statement in good form for T.O.'s Dance Studio. Also prepare closing entries for T.O.'s Dance studio, Prepare The Statement of Retained Earnings for T.O.'s Dance Studio , & lastly Prepare the Classified Balance Sheet for T.O.'s Dance Studio.

Answer 1

T.O.'s Dance Studio INCOME STATEMENT FOR THE PERIOD ENDED 12/31/11
Service revenue	18000
less:
Depreciation expense	1000
Rent Expense	2000
wage expenses	4000
Total expense	(7000)
Income before income tax expense	11000
less:Income tax expense	(1000)
Net income	10000

T.O.'s Dance Studio STATEMENT OF RETAINED EARNING FOR THE PERIOD ENDED 12/31/11
Beginning balance 1/1/2011	3000
Net income	10000
Total	13000
less:dividend	(1000)
Retained earning as on 12/31/11	12000

T.O.'s Dance Studio BALANCE SHEET AS ON 12/31/11
current asset
cash	5000
Accounts receivable	8000
Total current asset		13000
property plant and equipment
Equipment	9000
Less :Accumulated depreciation	(3000)	6000
Total asset		19000
Liabilities and stockholders equity
Accounts payable	3000
Income tax payable	1000
Unearned Revenue	1000
Total current liabilities		5000
stockholders equity
Contributed capital	2000
Retained earning	12000
Total stockholders equity		14000
Total Liabilities and stockholders equity		19000