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

ID: 2600527 • 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

1)

Income statement of Rider's Inc

for the period ended 31 december 2010

2)

Statement of retained earning of Rider's Inc

for the period ended 31 december 2010

3)

Balance sheet of Rider's Inc

for the period ended 31 december 2010

Income statement of Rider's Inc

for the period ended 31 december 2010

Client Revenue     60000 less:operating expense Office Supplies Expense     605 Depreciation Expense 8250 Rent Expense 5775 Insurance Expense 1010 Salaries Expense 20100 Total expense (35740) Income before interest and tax 24260 less:Interest expense (360) Income before tax 23900 lesS:Income Taxes Expense (6900) Net Income 17000
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