Question

In: Accounting

The adjusted trial balance of AL Marai Company as of December 31, 2019, contains the following.                          &nbs

  1. The adjusted trial balance of AL Marai Company as of December 31, 2019, contains the following.                                                                                                         [7 Points]   

Account title

Amount(Debit)

Amount(Credit)

Cash  

19,470

-

Accounts Receivable  

6,922

-

Prepaid rent  

2,280                  

-

Equipment   

18,050                  

-

Accumulated Depreciation

-

4,895

Notes Payable

-

5,700

Accounts Payable

-

5,472

Common Stock

-

20,000

Retained Earnings

-

11,310

Dividends

3.000                      

-

Service Revenue  

11,590

Salaries Expense

6,840                        

Rent Expense  

2, 260

-

Depreciation Expense

145

-

Interest Expense

83

-

Interest Payable                                                                                          

83

Total

59,050

59,050

Instructions:

Prepare an Income Statement, Statement of Retained Earnings and Balance Sheet after taking the following adjustments.

  1. Unpaid salaries SR 2,160
  2. Accrued service revenue SR 3, 410
  3. Prepaid rent SR 260
  4. solve in microsoft word

Solutions

Expert Solution

Service revenue = Service revenue+ Accrued service revenue

= 11,590+3,410

= 15,000
Salaries expense = Salaries expense+Unpaid salaries

= 6,840+2,160

= 9,000

Rent expense unadjusted = 2,260

Prepaid rent, unadjusted = 2,280

Prepaid rent ending = 260

Prepaid rent expired = Prepaid rent, unadjusted - Prepaid rent ending

= 2,280-260

= 2,020

Rent expense (adjusted) = Rent expense unadjusted + Prepaid rent expired

= 2,260+2,020

= 4,280

Income Statement
Service revenue 15,000
Expenses:
Interest expense 83
Rent expense 4,280
Depreciation expense 145
Salaries expense 9,000
Total expenses -13,508
Net Profit 1,492
Statement of Retained Earnings
Beginning retained earnings 11,310
Add: Net profit 1,492
12,802
Less: Dividends -3,000
Retained earnings, Ending 9,802
Balance Sheet
Assets Amount
Current Assets:
Cash 19,470
Accounts receivable 6,922
Prepaid rent 260
Accrued service revenue 3,410
Total Current Assets 30,062
Plant,Assets :
Equipment 18,050
Less: Accumulated depreciation -4,895
Total plant asset 13,155
Total Assets 43,217
Liabilities and Stockholders Equity
Current Liabilities:
Accounts payable     5,472
Notes payable     5,700
Interest payable          83
Unpaid salaries     2,160
Total Current liabilities     13,415
Total liabilities     13,415
Stockholders Equity:
Common stock 20,000
Retained earnings 9,802
Total stockholders equity 29,802
Total Liabilities & Stockholders Equity 43,217

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Gaze Co. Adjusted Trial Balance at 31 December 2019                                  &nbs
Gaze Co. Adjusted Trial Balance at 31 December 2019                                                                                 Debit                        Credit                          Cash                                                                        € 51,402                            Accounts receivable                                                 2,400                                 Office supplies                                                         600                                    Prepaid rent                                                             1,440                                 Office equipment                                                     64,800                               Accumulated depreciation: office equipment                                        € 42,300 Accounts payable                                                                                      1,680 Interest payable                                                                                           432 Income taxes payable                                                                               2,100 Unearned revenue                                                                                  10,800 Capital stock                                                                                           36,000 Retained earnings                                                                                     9,600 Dividends                                                               1,200                                 Consulting services revenue                                                                   72,000 Office supplies expense                                           726                                    Depreciation expense: office equipment                  9,900                                 Rent expense                                                          1,212                                 Salaries expense                                                     32,520                               Interest expense                                                      432                                    Income taxes...
The adjusted trial balance for Cowboy Company follows: Cowboy Company Adjusted Trial Balance December 31, 2019...
The adjusted trial balance for Cowboy Company follows: Cowboy Company Adjusted Trial Balance December 31, 2019 ACCOUNT NAME DEBIT CREDIT Cash       101,100 Accounts Receivable           5,000 Prepaid Rent           2,200 Building       120,000 Accumulated Depreciation - Building         80,000 Accounts Payable           3,000 Salaries Payable           5,600 Interest Payable           4,500 Unearned Revenue           9,500 Notes Payable         50,000 Cowboy, Capital         70,000 Cowboy, Withdrawals         30,000 Fees Earned       115,000 Wages Expense         40,000 Rent Expense         26,400...
The adjusted trial balance for Marigold at December 31, 2019, contains the following accounts. Debit Credit...
The adjusted trial balance for Marigold at December 31, 2019, contains the following accounts. Debit Credit Buildings $128,100 Common Stock $93,550 Accounts Receivable 14,000 Retained Earnings 25,750 Prepaid Insurance 4,100 Accumulated Depreciation—Buildings 43,100 Cash 19,600 Accounts Payable 11,600 Equipment 62,000 Notes Payable 96,100 Land 68,500 Accumulated Depreciation—Equipment 17,400 Insurance Expense 500 Interest Payable 2,300 Depreciation Expense 6,600 Service Revenue 15,900 Interest Expense 2,300    $305,700 $279,950 Prepare a classified balance sheet; assume that $21,000 of the note payable will be...
The following is the Easton Company adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31,...
The following is the Easton Company adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $88,665 Accounts Receivable 232,400 Supplies 17,000 Equipment 395,000 Accumulated Depreciation $224,260 Accounts Payable 72,555 Capital Stock 220,000 Retained Earnings 127,145 Service Revenue 881,105 Interest Income 5,500 Dividends 9,000 Rent Expense 59,500 Wages Expense 529,000 Supplies Expense 42,000 Utilities Expense 8,000 Depreciation Expense 150,000 ________ Totals $1,530,565 $1,530,565 Use this information to prepare the Single-Step Income Statement for the...
The following is the Frederick Company's adjusted Trial Balance. Frederick Company Adjusted Trial Balance December 31,...
The following is the Frederick Company's adjusted Trial Balance. Frederick Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $85,150 Accounts Receivable 229,140 Supplies 16,955 Equipment 395,285 Accumulated Depreciation $221,260 Accounts Payable 74,235 Capital Stock 220,000 Retained Earnings 101,145 Service Revenue 893,105 Interest Income 1,500 Dividends 2,000 Rent Expense 58,500 Wages Expense 527,260 Supplies Expense 42,520 Utilities Expense 8,595 Depreciation Expense 145,840 ________      Totals $1,522,565 $1,522,565 Use this information to prepare the Balance Sheet for the fiscal...
The following is the Frederick Company's adjusted Trial Balance. Frederick Company Adjusted Trial Balance December 31,...
The following is the Frederick Company's adjusted Trial Balance. Frederick Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $85,150 Accounts Receivable 229,140 Supplies 16,955 Equipment 395,285 Accumulated Depreciation $221,260 Accounts Payable 74,235 Capital Stock 220,000 Retained Earnings 101,145 Service Revenue 893,105 Interest Income 1,500 Dividends 2,000 Rent Expense 58,500 Wages Expense 527,260 Supplies Expense 42,520 Utilities Expense 8,595 Depreciation Expense 145,840 ________ Totals $1,522,565 $1,522,565 Use this information to prepare the Balance Sheet for the fiscal...
The following is the Easton Company's adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31,...
The following is the Easton Company's adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $88,665 Accounts Receivable 232,000 Supplies 17,000 Equipment 395,000 Accumulated Depreciation $224,260 Accounts Payable 72,555 Capital Stock 220,000 Retained Earnings 127,145 Service Revenue 877,105 Interest Income 5,500 Dividends 7,000 Rent Expense 59,900 Wages Expense 529,000 Supplies Expense 40,000 Utilities Expense 8,000 Depreciation Expense 150,000 ________      Totals $1,526,565 $1,526,565 Use this information to prepare the Balance Sheet for the fiscal...
The following is the Easton Company's adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31,...
The following is the Easton Company's adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $88,665 Accounts Receivable 232,000 Supplies 17,000 Equipment 395,000 Accumulated Depreciation $224,260 Accounts Payable 72,555 Capital Stock 220,000 Retained Earnings 127,145 Service Revenue 877,105 Interest Income 5,500 Dividends 7,000 Rent Expense 59,900 Wages Expense 529,000 Supplies Expense 40,000 Utilities Expense 8,000 Depreciation Expense 150,000 ________ Totals $1,526,565 $1,526,565 Use this information to prepare the Balance Sheet for the fiscal...
The following is the Easton Company's adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31,...
The following is the Easton Company's adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $88,665 Accounts Receivable 232,000 Supplies 17,000 Equipment 395,000 Accumulated Depreciation $224,260 Accounts Payable 72,555 Capital Stock 220,000 Retained Earnings 127,145 Service Revenue 877,105 Interest Income 5,500 Dividends 7,000 Rent Expense 59,900 Wages Expense 529,000 Supplies Expense 40,000 Utilities Expense 8,000 Depreciation Expense 150,000 ________ Totals $1,526,565 $1,526,565 Use this information to prepare the Balance Sheet for the fiscal...
The adjusted trial balance for Wisdom Company, as of December 31, 2019, is shown below: Wisdom...
The adjusted trial balance for Wisdom Company, as of December 31, 2019, is shown below: Wisdom Company Adjusted Trial Balance As at December 31, 2019 Dr Cr Accounts receivable 19,800 Machinery 44,800 Cash 22,600 Accumulated depreciation - Machinery Depreciation expense - Machinery 2,000 21,000 Rental expense 44,000 Salary expense 35,580 Electricity expense 2,400 Accounts payable 3,500 Notes payable 30,000 Interest payable 3,980 Share Capital 10,000 Retained earnings as at January 1, 2019 23,000 Marketing revenue Dividends 20,000 110,000 Supplies Unearned...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT