Question

Using the information presented below, prepare an income statement and the balance sheet from the adjusted trial balance of McTangy Spices. McTangy Spices. Adjusted Trial Balance December 31 Cash %bodyamp;nbsp; 3,050 Accounts receivable 400 Prepaid insurance 830 Office supplies 80 Office equipment 4,200 Accumulated depreciation–office equipment $ 1,100 Buildings 98,000 Accumulated depreciation–buildings 28,000 Land 115,000 Wages Payable 880 Property taxes payable 1,400 Interest payable 2,200 Unearned rent 460 Notes payable 150,000 McTangy Spices, Capital Stock 40,340 McTangy Spices, Dividends 21,000 Rent earned 57,500 Wages expense 25,000 Utilities expense 1,900 Property taxes expense 2,400 Insurance expense 800 Office supplies expense 250 Depreciation expense–office equipment 400 Depreciation expense–buildings 5,570 Interest expense 3,000 Totals $281,880 $281,880 Required: Use a spreadsheet to prepare the Income Statement Balance Sheet

Answer 1

Solution:

Income statement
Particulars	Amount
Rent Earned	$57,500.00
Less: Expenses:
Wage Expense	$25,000.00
Utilities Expense	$1,900.00
Property tax expense	$2,400.00
Insurance expense	$800.00
Office supplies expense	$250.00
Depreciation expense - Office equipment	$400.00
Depreciation expense - Building	$5,570.00
Interest Expense	$3,000.00
Net Income	$18,180.00

Balance Sheet
Liabilities	Amount	Assets	Amount
Wages Payable	$880.00	Cash	$3,050.00
Property taxes payable	$1,400.00	Accounts Recievables	$400.00
Interest payable	$2,200.00	Prepaid insurance	$830.00
Unearned Rent	$460.00	Office Supplies	$80.00
Notes Payable	$150,000.00	Office Equipment - Net ($4,200 - $1,100)	$3,100.00
		Building - net ($98,000 - $28,000)	$70,000.00
Captial Stock ($40,340 + $18,180 - $21,000)	$37,520.00	Land	$115,000.00
Total	$192,460.00	Total	$192,460.00