Question

The adjusted trial balance of Ryan Financial Planners appears below. Using the information from the adjusted trial balance, you are to prepare for the month ending December 31:

	1.	an income statement.
	2.	a retained earnings statement.
	3.	a balance sheet.

RYAN FINANCIAL PLANNERS Adjusted Trial Balance December 31, 2014
					Debit		Credit
Cash				$ 3,400
Accounts Receivable				3,200
Supplies				1,800
Equipment				15,000
Accumulated Depreciation—Equipment						$ 3,000
Accounts Payable						3,300
Unearned Service Revenue						5,000
Common Stock						10,000
Retained Earnings						4,400
Dividends				2,000
Service Revenue						5,200
Supplies Expense				600
Depreciation Expense				2,000
Rent Expense				2,900		______
				$30,900		$30,900

Answer 1

Answer
INCOME STATEMENT :
REVENUE
Service revenue		$       5,200
EXPENSES
Supplies revenue	$         -600
Depreciation expenses	$      -2,000
Rent expenses	$      -2,900	$      -5,500
Net income (Loss)		$         -300
STATEMENT OF RETAINED EARNINGS :
Beginning retained earnings	$       4,400
Less: Net Loss	$         -300
Less: Dividends	$      -2,000
Ending retained earnings	$       2,100
BALANCE SHEET :
ASSETS
CURRENT ASSETS
Cash	$       3,400
Account receivable	$       3,200
Supplies	$       1,800	$       8,400
NON CURRENT ASSETS
Equipment	$     15,000
Less: Accumulated dep	$      -3,000	$     12,000
TOTAL ASSETS		$     20,400
LIABILITIES AND STOKHOLDER'S EQUITY
CURRENT LIABILITIES
Account payable	$       3,300
Unearned revenue	$       5,000	$       8,300
LONG TERM LIABILITIES
TOTAL LIABILITIES		$       8,300
STOCKHOLDER'S EQUITY
Common stock	$     10,000
Retained earnings	$       2,100
TOTAL STOCKHOLDER'S EQUITY		$     12,100
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY		$     20,400
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