Question

Below is the unadjusted trial balance for Gray Electronic Repair Services;
Gray Electronic Repair Services
Unadjusted Trial Balance
December 31, 2019

Account Title Debit Credit

Cash $ 7,480.00
Accounts Receivable 3,400.00
Service Supplies 1,500.00
Furniture and Fixtures 3,000.00
Service Equipment 16,000.00
Accounts Payable $ 9,000.00
Loans Payable 12,000.00
Mr. Gray, Capital 13,200.00
Mr. Gray, Drawing 7,000.00
Service Revenue 9,550.00
Rent Expense 1,500.00
Salaries Expense 3,500.00
Taxes and Licenses 370.00
Totals $ 43,750.00 $ 43,750.00
Assumes the following adjustments data have been done after
December, 2019
1. Supplies on hand $ 600
2. They provide a service for $2300 on account.
3. The company paid for its utility on account $800.
4. The company had accumulated depreciation $720.
5. The company buys new furniture $600.
6. They provide services to a client and receive $1500 cash immediately.
7. The company prepaid $2400 for insurance for 12 months starting from
1/1/2020.
8. The company buys new supplies for $300.
9. The company incurred rent expense for $300.
10. The company receives $800 from the client
You are required to prepare the following in worksheet format.

I. Adjusted Trail balance .
II. Income Statement .
III. Balance sheet (Financial Position) Statement .

Answer 1

Adjusted Trial Balance
Account Title	Debit	Credit
Cash	$    5,380.00
Accounts Receivable	$    4,900.00
Service Supplies	$    1,800.00
Furniture and Fixtures	$    3,600.00
Service Equipment	$ 16,000.00
Accounts Payable		$    9,000.00
Loans Payable		$ 12,000.00
Mr. Gray, Capital		$ 13,200.00
Mr. Gray, Drawing	$    7,000.00
Service Revenue		$ 13,350.00
Rent Expense	$    1,800.00
Salaries Expense	$    3,500.00
Taxes and Licenses	$        370.00
Prepaid insurance	$    2,400.00
Utility expense	$        800.00
	$ 47,550.00	$ 47,550.00

Income statement
Particulars	Notes	Amount ($)
Revenue from operations		$ 13,350.00
Less: Expenses
Changes in inventory	$     (600.00)
Rent expense	$    1,800.00
Salaries paid	$    3,500.00
Utility expense	$        800.00
Depreciation and amortization	$        720.00	$ (6,220.00)
Net income before tax		$    7,130.00
Less: Taxes paid		$     (370.00)
Net income after taxes		$    6,760.00
Statement of position
Particulars	Amount	Amount
A. EQUITY AND LIABILITIES
1. Capital funds
a. Capital
Capital	$ 13,200.00
Less: Drawings	$ (7,000.00)	$    6,200.00
b. Reserves and surplus		$    6,760.00
2. Current liabilities
a. Trade payables		$    9,000.00
b. Other payables (Loan)		$ 12,000.00
Total (A)		$ 33,960.00
B. ASSETS
1. Non Current Assets
a. Tangible assets
Service equipment	$ 16,000.00
Less: Accumulated depreciation	$     (720.00)	$ 15,280.00
Furniture and fixtures		$    3,600.00
2. Current assets
a. Trade receivables	$    4,900.00
b. Inventory	$        600.00
c. Service supplies	$    1,800.00
d. Prepaid insurance	$    2,400.00
e. Cash and cash equivalents	$    5,380.00	$ 15,080.00
Total (B)		$ 33,960.00

WN: Closing entries

	Dr.	Cr.
P&L A/c		$        600.00
Closing stock	$        600.00
Service Revenue		$    2,300.00
Accounts Receivable	$    2,300.00
Utility expense	$        800.00
Cash		$        800.00
Furniture and Fixtures	$        600.00
Cash		$        600.00
Service Revenue		$    1,500.00
Cash	$    1,500.00
Service Supplies	$        300.00
Cash		$        300.00
Prepaid insurance	$    2,400.00
Cash		$    2,400.00
Rent Expense	$        300.00
Cash		$        300.00
Accounts Receivable		$        800.00
Cash	$        800.00
P&L A/c	$        720.00
Accumulated depreciation		$        720.00