st. denis inc kept record without accountant, after mucheffort outside accountan
ID: 2445742 • Letter: S
Question
st. denis inc kept record without accountant, after mucheffort outside accountant prepared unadjusted trial balance as ofthe end of annual accounting peiord dec. 31, 2007 accounttitle debit credit cash 60000 accountsreceivable 13000 supplies 800 prepaidinsurance 1000 servicetrucks 20000 accumulated depreciation, servicetrucks 12000 otherassets 11200 accountspayable 3000 income taxpayable notes payable(3yrs; 10% interest due eachdec31) 20000 contributed capital(5000 sharesoutstanding) 28200 retainedearnings 7500 servicerevenue 77000 remaining expense(not detailed;exclude income tax) 41700 ------------ ---------- $147,700 $147,700 data not yet recorded at dec 31, 2007 a. supplies counted on dec 31, 2007, reflected $300 remainingon hand to be used in 2008 b. insurance expired during 2007; $500 c. depreciation expense for 2007; $4000 d. wages earned by employees not yet paid on dec. 31, 2007;$900 e. income tax expense was $7350 --------------------- required: prepare an income statement and a classified balance sheetthat include the effects of the preceding 5(a-e) transactions st. denis inc kept record without accountant, after mucheffort outside accountant prepared unadjusted trial balance as ofthe end of annual accounting peiord dec. 31, 2007 accounttitle debit credit cash 60000 accountsreceivable 13000 supplies 800 prepaidinsurance 1000 servicetrucks 20000 accumulated depreciation, servicetrucks 12000 otherassets 11200 accountspayable 3000 income taxpayable notes payable(3yrs; 10% interest due eachdec31) 20000 contributed capital(5000 sharesoutstanding) 28200 retainedearnings 7500 servicerevenue 77000 remaining expense(not detailed;exclude income tax) 41700 ------------ ---------- $147,700 $147,700 data not yet recorded at dec 31, 2007 a. supplies counted on dec 31, 2007, reflected $300 remainingon hand to be used in 2008 b. insurance expired during 2007; $500 c. depreciation expense for 2007; $4000 d. wages earned by employees not yet paid on dec. 31, 2007;$900 e. income tax expense was $7350 --------------------- required: prepare an income statement and a classified balance sheetthat include the effects of the preceding 5(a-e) transactions st. denis inc kept record without accountant, after mucheffort outside accountant prepared unadjusted trial balance as ofthe end of annual accounting peiord dec. 31, 2007 accounttitle debit credit cash 60000 accountsreceivable 13000 supplies 800 prepaidinsurance 1000 servicetrucks 20000 accumulated depreciation, servicetrucks 12000 otherassets 11200 accountspayable 3000 income taxpayable notes payable(3yrs; 10% interest due eachdec31) 20000 contributed capital(5000 sharesoutstanding) 28200 retainedearnings 7500 servicerevenue 77000 remaining expense(not detailed;exclude income tax) 41700 ------------ ---------- $147,700 $147,700 data not yet recorded at dec 31, 2007 a. supplies counted on dec 31, 2007, reflected $300 remainingon hand to be used in 2008 b. insurance expired during 2007; $500 c. depreciation expense for 2007; $4000 d. wages earned by employees not yet paid on dec. 31, 2007;$900 e. income tax expense was $7350 --------------------- required: prepare an income statement and a classified balance sheetthat include the effects of the preceding 5(a-e) transactionsExplanation / Answer
Service Revenue 77,000.00 Less: Supplies Expended 500.00 Insurance Expense 500.00 Depreciation expense 4,000.00 Remaining Expenses 42,600.00 ( 41700 + 900 ) Income Tax 7,350.00 (54,950.00) NetIncome 22,050.00 Balance Sheet as on Dec 31,2007 Assets Cash 60,000.00 Accounts Receivable 13,000.00 Supplies 300.00 Other Assets 11,200.00 Prepaid Insurance 500.00 Service Trucks 20,000.00 105,000.00 Liabilities Accounts Payable 3,000.00 Income Tax Payable 7,350.00 Notes Payable 20,000.00 Accumulated Depreciation 16,000.00 Salaries outstanding 900.00 Contributed Capital 28,200.00 Retained Earnings 29,550.00 ( 7500 + 22050 ) 105,000.00
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