US weygandt, Accounting Principles, 12e Exercise 4-3 The adjusted brial balance
ID: 2409335 • Letter: U
Question
US weygandt, Accounting Principles, 12e Exercise 4-3 The adjusted brial balance columns of the werksheet for Savaglia Compary are as follows. The owner did not make any additional investments in the business in Apr Werksheet (partial) For the Honth Ended April 30, 2017 djusted Trial Account Titles 13,800 7,800 Accounts Receivable Prepold Rent 23,300 5,700 ,300 counts Payable Owner's Capital wner's Drawings Service R Salaries and Wages Expense ,900 15,700 Depredation Expense sherent Expense nterest Payable 40 Prepare an income statementcEnter negative amownts using either a negative sign preceding the number eg -45 or parentheses o(453Explanation / Answer
Current assets
Solution: SAVAGLIA COMPANY Income Statement For the Month Ended April 30, 2017 Revenues Service revenue 15,700 a Expenses Salaries and wages expense 10,600 b Rent Expense 700 c Depreciation expense 740 d Interest expense 40 e Total expenses 12,080 f=b+c+d+e Net income 3,620 g=a-f SAVAGLIA COMPANY Owner's Equity Statement For the Month Ended April 30, 2017 Owner's Capital, April 1 29,640 h Add: Net income 3,620 i= see g 33,260 j=h+i Less: Drawings 3,900 k Owner's Capital, April 30 29,360 L=J-K SAVAGLIA COMPANY Balance Sheet April 30, 2014 AssetsCurrent assets
Cash 11,800 m Accounts receivable 7800 n Prepaid rent 2400 o Total current assets 22,000 p=m+n+o Property, plant, and equipment Equipment 23,300 q Less: Accumulated depreciation - equipment 4700 18,600 r=23,300-4700 Total assets 40,600 s=r+p Liabilities and Owner's Equity Current liabilities Notes payable 5700 t Accounts payable 5500 u Interest payable 40 v Total current liabilities 11240 x=t+u+v Owner's Equity Owner's Capital 29,360 Y= see L Total liabilities and owner's equity 40600 Z=X+Y Notes: Alphabetical explanation is just given for your understanding Please feel free to ask if anything about above solution in comment section of the question.Related Questions
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