Requirement #7: Prepare the financial statements for Parkview Landscaping Corpor
ID: 2360439 • Letter: R
Question
Requirement #7:
Prepare the financial statements for Parkview Landscaping Corporation as of July 31 in the space below.
You will only be preparing the Income Statement, Statement of Retained Earnings and the Balance Sheet. The numbers in red are the right amounts I need help on this.
https://rapidshare.com/files/120690852/The_Complete_Accounting_Cycle_in_progress.xlsx
Parkview Landscaping Corporation
Income Statement
For the Month Ending July 31
Revenues:
Landscaping Revenue $5,344
Expenses:
Rent Expense 2,080
Utility Expense 308
Insurance Expense 200
Supplies Expense
Depreciation Expense
Income Taxes Expense
Total Expenses 2,756
Net Income $2,144
.......................................................................................
Parkview Landscaping Corporation
Statement of Retained Earnings
For the Month Ending July 31
Retained Earnings,
July 1 Add:
Net Income 2,144
Subtotal
Less: Dividends 1,600
Retained Earnings, July 31 $544
.................................................................................................
Parkview Landscaping Corporation
Balance Sheet July 31
Assets: Cash $24,000
Prepaid Insurance 2,400
Landscaping Supplies 780
Landscaping Equipment 8,800
Less: Accum. Depr. 1,600
Total Assets
Liabilities:
Accounts Payable 7,600
Income Taxes Payable 0
Total Liabilities 7,600
Stockholders' Equity:
Common Stock 1,600
Retained Earnings 544 T
otal Stockholders' Equity 2,144
Total Liabilities & 32,604
Stockholders' Equity You can use this info to verified the amiunts:
Description(Account Name) Debit Credit Cash 24,000 Common Stock $24,000 prepaid insurance 2,400 cash $2,400 rent expense $2,080 cash $2,080 lanscaping equipment $8,800 cash $1,200 Accounts payable $7,600 Landscaping Supplies $780 Accounts payable $780 Utility Expense $308 cash $308 cash $2,724 Landscaping Revenue Accounts payable $400 cash $400 cash $2,620 Landscaping Revenue $2,620 Retained Earnings 1,600 cash 1,600
https://rapidshare.com/files/120690852/The_Complete_Accounting_Cycle_in_progress.xlsx
Explanation / Answer
1) Depreciation Expense HAS TO BE $612... Your Net Income Computed as: Revenues 5,344 Less: Rent 2,080 Utilities 308 Insurance 200 Depreciation Exp 612 3,200 Net Income 2,144 based on your given figure 2) Retained Earnings-correct per your computation 3) Balance Sheet: Cash ------------------------------------------ 21,356 Prepaid Exp 2,200 (since you claimed 200 ins exp Landscaping Supplies 780 Landscaping Equipment 8,800 Less:Acc Depn (612) Total Assets 32,524 Liabilities: Accounts Payable 7,980 Stockholders Equity Common Stock 24,000 Retained Earnings 544 Total Liab and Stock Eqty 32,524 Cash T Account: DR's 24,000 2,724, 2,620 CR's 2,400, 2,080, 1,200, 308, 400, 1,600 A/P T account: DRs: 400 CR's 7,600, 780
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