Question

The adjusted trial balance of Rayan 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 statement of financial position.

RAYAN FINANCIAL PLANNERS

Adjusted Trial Balance

December 31, 2016

                                                                                                                    Debit                  Credit

Cash ..................................................................................................      € 4,400

Accounts Receivable.........................................................................          2,200

Office Supplies..................................................................................          1,800

Office Equipment..............................................................................        15,000

Accumulated Depreciation—Office Equipment...............................                                 € 4,000

Accounts Payable..............................................................................                                     3,800

Unearned Revenue.............................................................................                                     5,000

Share Capital–Ordinary.....................................................................                                   10,000

Retained Earnings..............................................................................                                     4,400

Dividends .........................................................................................          2,500

Service Revenue................................................................................                                     3,700

Office Supplies Expense....................................................................             600

Depreciation Expense........................................................................          2,500

Rent Expense.....................................................................................          1,900               ______

                                                                                                                 €30,900              €30,900

Answer 1

STATEMENT OF INCOME
							Amount
Service revenue							3,700
Less: Expense
	Office supplies expense			600
	Depreciation expense			2,500
	Rent Expense			1,900			5,000
Net operating loss							-1300
STATEMENT OF RETAINED EARNINGS
							Amount
Beginning balance							4,400
Less: Net operating loss							1,300
Less: Dividend paid							2,500
Ending balance of retained earninngs							600
BALANCE SHEET
							Amount
ASSETS:
Current Assets:
	Cash					4,400
	Accounts Receivable					2200
	Supplies					1800	8400
Fixed Assets:
	Equipment					15,000
	Less: Accumulated Dep					4,000	11,000
				TOTAL ASSETS			19,400
LIABILITIES:
Current Liabilities:
	Accounst Payable					3,800
	Unearned revenue					5,000	8,800
Share capital -ordinary							10,000
Retained earnings							600
				TOTAL LIABILITIES			19,400