Question

The adjusted trial balance for Pharoah Company is given below.

Pharoah Company Trial Balance August 31, 2020
		Before Adjustment				After Adjustment
		Dr.		Cr.		Dr.		Cr.
Cash		$10,200				$10,200
Accounts Receivable		8,900				9,900
Supplies		2,300				600
Prepaid Insurance		3,800				2,700
Equipment		13,500				13,500
Accumulated Depreciation-Equipment				$ 3,700				$ 4,500
Accounts Payable				5,800				5,800
Salaries and Wages Payable				0				1,400
Unearned Rent Revenue				1,400				800
Common Stock				11,200				11,200
Retained Earnings				3,600				3,600
Service Revenue				33,900				34,900
Rent Revenue				11,100				11,700
Salaries and Wages Expense		16,800				18,200
Supplies Expense		0				1,700
Rent Expense		15,200				15,200
Insurance Expense		0				1,100
Depreciation Expense		0				800
		$70,700		$70,700		$73,900		$73,900

Prepare the retained earnings statement for the year, prepare the income statement for the year, prepare the balance sheet at August 31.

Answer 1

Answer-1)-

PHAROAH COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED AUGUST 31,2020
PARTICULARS		AMOUNT
		$
Revenues		46600
Service revenue	34900
Rent revenue	11700
Less-Expenses
Salaries & wages expense	18200
Supplies expense	1700
Rent expense	15200
Insurance expense	1100
Depreciation expense	800
Total expenses		37000
Net Income		9600

2)-

PHAROAH COMPANY
STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED AUGUST 31		Amount
		$
Retained earnings opening		3600
Add- Net income		9600
Less- Dividends		0
Retained earnings ending		13200

3)-

PHAROAH COMPANY
BALANCE SHEET
AUGUST 31,2020
Assets		Amount
		$
Current Assets		23400
Cash	10200
Accounts receivable	9900
Supplies	600
Prepaid insurance	2700
Non Current Assets
Equipment	13500
Less- Accumulated depreciation	4500	9000
Total Assets		32400
Liabilities
Current liabilities		8000
Accounts payable	5800
Unearned rent revenue	800
Salaries & wages payable	1400
Stockholder's Equity		24400
Common stock	11200
Retained earnings	13200
Total liabilities and stockholder's equity		32400