Question

Transaction Analysis, Trial Balance, and Financial Statements

Kate Smith operates the Smith Dance Studio. The trial balance as of June 30 is as follows:

SMITH DANCE STUDIO Trial Balance June 30
		Debit		Credit
Cash		$25,110
Accounts Receivable		13,480
Piano		6,000
Accounts Payable				180
Notes Payable				9,500
Common Stock				11,870
Retained Earnings				13,780
Dividends		900
Instructional Fees Earned				9,600
Performance Revenue				6,300
Rent Expense		4,600
Utilities Expense		480
Advertising Expense		550
Interest Expense		110
Totals		50,230		50,230

Required

c. Prepare an income statement for the month of June.

d. Prepare a statement of stockholders' equity for the month of June.

e. Prepare a balance sheet as of June 30.

f. Prepare closing entries.

g. Prepare a post-closing trial balance.

c.

SMITH DANCE STUDIO Income Statement For the Month Ended June 30
Revenue
Instructional Fees Earned	Answer
Performance Revenue	Answer
Total Revenues			Answer
Expenses
Rent Expense	Answer
Utilities Expense	Answer
Advertising Expense	Answer
Interest Expense	Answer
Total Expenses			Answer
Net Income			Answer

d.

SMITH DANCE STUDIO Statement of Stockholders Equity For the Month Ended June 30
	Common Stock		Retained Earnings		Total
Balance, June 1	Answer		Answer		Answer
Add: Net Income	Answer		Answer		Answer
Less: Dividends paid(enter as negative)	Answer		Answer		Answer
Balance, June 30	Answer		Answer		Answer

e.

SMITHDANCE STUDIO Balance Sheet June 30
Assets		Liabilities
AnswerCashAccounts ReceivableAccounts PayableCommon StockRetained Earnings	Answer	AnswerCashAccounts ReceivableAccounts PayableCommon StockRetained Earnings	Answer
AnswerCashAccounts ReceivableAccounts PayableCommon StockRetained Earnings	Answer	Notes Payable	Answer
Piano	Answer	Total Liabilities	Answer
		Stockholders' Equity
		AnswerCashAccounts ReceivableAccounts PayableCommon StockRetained Earnings	Answer
		AnswerCashAccounts ReceivableAccounts PayableCommon StockRetained Earnings	Answer
		Total Stockholders' Equity	Answer
Total Assets	Answer	Total Liabilities and Stockholders' Equity	Answer

f.

General Journal
Date	Description	Debit	Credit
June 30	Instructional Fees earned	Answer	Answer
	AnswerDividendsInterest expensePerformance revenueRetained earnings	Answer	Answer
	AnswerDividendsInterest expensePerformance revenueRetained earnings	Answer	Answer
	To close revenue accounts.
June 30	AnswerDividendsInterest expensePerformance revenueRetained earnings	Answer	Answer
	Rent expense	Answer	Answer
	Utilities expense	Answer	Answer
	Advertising expense	Answer	Answer
	AnswerDividendsInterest expensePerformance revenueRetained earnings	Answer	Answer
	To close the expense accounts.
June 30	AnswerDividendsInterest expensePerformance revenueRetained earnings	Answer	Answer
	AnswerDividendsInterest expensePerformance revenueRetained earnings	Answer	Answer
	To the closed the dividends account.

g.

SMITH DANCE STUDIO Post-Closing Trial Balance June 30
	Debit	Credit
Cash	Answer	Answer
Accounts receivable	Answer	Answer
Piano	Answer	Answer
Accounts payable	Answer	Answer
Notes payable	Answer	Answer
Common stock	Answer	Answer
Retained earnings	Answer	Answer
Totals	Answer	Answer

Answer 1

c.

Smith Dance Studio Income Statement For the month ended June 30
Revenue	$	$
Instructional Fees Earned	9,600
Performance Revenue	6,300
Total Revenue		15,900
Expenses
Rent Expense	4,600
Utilities Expense	480
Advertising Expense	550
Interest Expense	110
Total Expenses		5,740
Net Income		10,160

d.

Smith Dance Studio Statement of Stockholders Equity For the month ended June 30
	Common Stock	Retained Earnings	Total
Balance, June 1	$ 11,870	$ 13,780	$ 25,650
Add: Net Income	0	10,160	10,160
Less: Dividends	0	(900)	(900)
Balance, June 30	$ 11,870	$ 23,040	$ 34,910

e.

Smith Dance Studio Balance Sheet June 30
Assets	$	Liabilities	$
Cash	25,110	Accounts Payablee	180
Accounts Receivable	13,480	Notes Payable	9,500
Piano	6,000	Total Liabilities	9,680
		Stockholders' Equity
		Common Stock	11,870
		Retained Earnings	23,040
		Total Stockholders Equity	34,910
Total Assets	44,590	Total Liabilities and Stockholders Equity	44,590

f.

General Journal
Date	Description	Debit	Credit
		$	$
June 30	Instructional Fees Earned	9,600
	Performance Revenue	6,300
	Retained Earnings		15,900
	To close revenue accounts
June 30	Retained Earnings	5,740
	Rent Expense		4,600
	Utilities Expense		480
	Advertising Expense		550
	Interest Expense		110
	To close expense accounts
June 30	Retained Earnings	900
	Dividends		900
	To close dividends account

g.

Smith Dance Studio Post Closing Trial Balance June 30
	Debit	Credit
Cash	25,110
Accounts Receivable	13,480
Piano	6,000
Accounts Payable		180
Notes Payable		9,500
Common Stock		11,870
Retained Earnings		23,040
Totals	$ 44,590	$ 44,590