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Rider’s Inc. Trial Balance December 31, 2010 Cash $20,585 Accounts Receivable 2,

ID: 2600300 • Letter: R

Question

Rider’s Inc.

Trial Balance

December 31, 2010

Cash                           $20,585

Accounts Receivable                      2,000

Office Supplies                   205

Prepaid Rent                          1,100

Prepaid Insurance                   170

Office Equipment                      54,000

Accumulated Depreciation; Office Equipment           $25,250

Accounts Payable                              1,400

Interest Payable                           160

Income Taxes Payable                              1,750

Note Payable                                  2,000

Unearned Revenue                              3,500

Capital Stock                                  20,000

Retained Earnings                              8,000

Dividends                       1,000

Client Revenue                              60,000

Office Supplies Expense                    605

Depreciation Expense; Office Expense       8,250

Rent Expense                       5,775

Insurance Expense                   1,010

Salaries Expense                   20,100

Interest Expense                      360

Income Taxes Expense               6,900

                           ________   ________

Totals                       $122,060   $122,060

                           ======   ======

Using the above Trial Balance, compile the following financial statements.

Income Statement, Statement of Retained Earnings and Balance Sheet.

Be sure to use proper form to earn full credit

Explanation / Answer

         24,000

Amt.

Rider's Inc. Income Statement For the year ended December 31,2010 Revenue Clients Revenue $          60,000 Total Revenue          60,000 Expenses General And Administrative Expenses : *Office supplies                605 *Office Expense            8,250 *Rent Expense            5,775 *insurance Expense            1,010 *Salaries Expense          20,100          35,740 Interest Expense                360 Income Before Tax Expenses          23,900 Less: Income tax expense            6,900 Net Income          17,000
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