In: Accounting
The completed worksheet for Cantu Corporation as of December 31,
2019, after the company had completed the first month of operation,
appears below.
CANTU CORPORATION Worksheet Month Ended December 31, 2019 |
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Trial Balance | Adjustments | Adjusted Trial Balance | Income Statement | Balance Sheet | |||||||||||||||||||||||||||
Account Name | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | |||||||||||||||||||||
Cash | 76,900 | 76,900 | 76,900 | ||||||||||||||||||||||||||||
Accounts Receivable | 11,700 | 11,700 | 11,700 | ||||||||||||||||||||||||||||
Supplies | 9,500 | 5,700 | 9,500 | 3,800 | |||||||||||||||||||||||||||
Prepaid Advertising | 12,600 | 2,100 | 12,600 | 10,500 | |||||||||||||||||||||||||||
Equipment | 92,500 | 92,500 | 92,500 | ||||||||||||||||||||||||||||
Accumulated Depreciation—Equipment | 1,850 | 1,850 | 1,850 | ||||||||||||||||||||||||||||
Accounts Payable | 11,700 | 11,700 | 11,700 | ||||||||||||||||||||||||||||
Selena Cantu, Capital | 107,700 | 107,700 | 107,700 | ||||||||||||||||||||||||||||
Selena Cantu, Drawing | 6,900 | 6,900 | 6,900 | ||||||||||||||||||||||||||||
Fees Income | 108,700 | 108,700 | 108,700 | ||||||||||||||||||||||||||||
Supplies Expense | 5,700 | 5,700 | 5,700 | ||||||||||||||||||||||||||||
Advertising Expense | 2,100 | 2,100 | 2,100 | ||||||||||||||||||||||||||||
Depreciation Expense-Equipment | 1,850 | 1,850 | 1,850 | ||||||||||||||||||||||||||||
Salaries Expense | 16,500 | 16,500 | 16,500 | ||||||||||||||||||||||||||||
Utilities Expense | 1,500 | 1,500 | 1,500 | ||||||||||||||||||||||||||||
Totals | 228,100 | 228,100 | 9,650 | 9,650 | 229,950 | 229,950 | 27,650 | 108,700 | 202,300 | 121,250 | |||||||||||||||||||||
Net Income | 81,050 | 81,050 | |||||||||||||||||||||||||||||
108,700 | 108,700 | 202,300 | 202,300 | ||||||||||||||||||||||||||||
Required:
Prepare an income statement.
Prepare a statement of owner’s equity. The owner made no additional investments during the month.
Prepare a balance sheet.
Analyze:
If the adjustment to Prepaid Advertising
had been $4,200 instead of $2,100, what net income would have
resulted?
1) income statement
Fees Income =108,700
less: expenses
Supplies Expense 5,700
Advertising Expense 2,100
Depreciation Expense-Equipment 1,850
Salaries Expense 16,500
Utilities Expense 1,500 = 27650
Net income = $81,050
statement of owner’s equity
Selena Cantu, Capital December 1, 2019 = 0
Add: Contribution = 107,700
Add: net income = 81,050
less:Selena Cantu, Drawing = 6,900
Selena Cantu, Capital December 31, 2019 = 181850
Balance sheet
Assets
Cash 76,900
Accounts Receivable 11,700
Supplies 3,800
Prepaid Advertising 10,500
Equipment 92,500
Accumulated Depreciation—Equipment (1,850) 90650
Total assets 193550
Liabilities and shareholder's equity
Accounts Payable 11,700
Shareholder's equity :
Selena Cantu, Capital 181850
Total Liabilities and shareholder's equity 193550
2) net income = 81,050
Less:advertising expense = 2100
= 78950
Note:- Out of $4200 adjustment to prepaid adverstising, $2100 had already been adjusted and now remaining $2100 is to be conisdered