Required: Using the trial balance provided above, prepare an income statement an

Question

  
Required:
Using the trial balance provided above, prepare an income statement and statement of changes in equity for the first month ended May 31, 2017, and a balance sheet at May 31, 2017.

  

  

   

  
Analysis Component:
Upon review of the trial balance, the balance at May 31, 2017 for utilities expense is $1,320. Create a journal entry that might have created this balance. Create a second entry when the May utility bill is to be paid in the next month. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The balance in the utilities expense account could have arisen on account of one of the following entries.

Hipster Optical
Trial Balance
May 31, 2017

Explanation / Answer

Analyze:

Hipster Optical Income Statement For the Month Ended May 31, 2017 Services revenue 21200 Less: Expenses Wages expense 14200 Rent expense 3500 Utilities expense 1320 Total expense 19020 Net income $ 2180

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