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ari Fle Edit View History Bookmarks Window Help O\" ezto.mheducation.com Chap A

ID: 2510920 • Letter: A

Question

ari Fle Edit View History Bookmarks Window Help O" ezto.mheducation.com Chap A six-column table for JKL Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31, 2015. The last two columns contain the adjusted trial balance as of the same date Unadjusted Trial Balance Trial Balance Accounts recelvable Office supplies Prepaid insurance 102,520 12,000 18.400 8,140 $ 102,520 24,500 3,500 2,960 82.000 Office equipment Accum. Depreciation-Offic Accounts payable $ 23.000 s 30000 nterest payable Salaries payable Unearned consulting fees Long-term notes payable J. Logan, Capital 24,000 3,000 9,000 15,000 24,000 60,000 50000 J. Logan, Withdrawals 0,000 Consulting fees earned Depreciation expense Office equip Salaries expense interest expense Insurance expense Rent expense Office supplies expense Advertising expense 164,000 185,500 7000 86,680 4.250 5,180 14,600 14,900 28.410 67,680 12,510 s 329100 $ 329100 $ 386,500 $386.500 3. 1000 points 2(a-4) Prepars JKL Companys income statement for the year anded July 31, 2015 JK L COMPANY

Explanation / Answer

1. Income statement

Consulting fees earned = 185500

less: expenses

Depreciation expense-office equip. 7000

salaries expenses 86680

Interest expenses 4250

insurance expense 5180

Rent expense 14600

Office supplies expense 14900

advertising expense 28410 = 161020   

   net income = 24480

2.    Statement of owner's equity

J logan capital , July 31,2014 = 50000

Add: net income =    24480

less: Drawing = (10000)

J logan capital , July 31,2015 = 64480

3.   Balance sheet   

Assets

Cash 102520

Accounts receivables 24500

Office supplies 3500

Prepaid inusrance 2960   

Total current assets 133480

Office equipment 82000

less: Accumulated depreciation 30000 52000

Total Assets 185480

Liabilities

Accounts payable 24000   

Interest payable 3000

Salaries payable 19000

Unearned consulting fees 15000

Total current liabilities 61000

Long term notes payable 60000

Total liabilities 121000

Owner's Equity

J logan capital    64480

Total Liabilities and Owner's Equity 185480