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Prepare the financial statements for Smart Touch Learning for the month of December. Remember that the business started operations this month so all beginning balances were zero. For the Statement of Retained Earnings and the Balance Sheet, enter any decreases with a minus sign or parentheses.

SMART TOUCH LEARNING
Adjusted Trial Balance
December 31, 2016
Balance
Account Title Debit Credit
Cash 42,310
Accounts Receivable 2,400
Office Supplies 420
Prepaid Insurance 900
Furniture 13,300
Accumulated Depreciation
- Furniture 400
Salaries Payable 1,100
Unearned Revenue 4,200
Common Stock 41,500
Dividends 2,200
Service Revenue 20,400
Salaries Expense 3,300
Depreciation Expense
- Furniture 400
Insurance Expense 300
Utilities Expense 390
Rent Expense 1,600
Supplies Expense 80
Total 67,600 67,600

User Rafe
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Answer:

SMART TOUCH LEARNING

Income Statement

December 31, 2016

Service Revenue 20,400

Salaries Expense 3,300

Depreciation Expense

- Furniture 400

Insurance Expense 300

Utilities Expense 390

Rent Expense 1,600

Supplies Expense 80 6,070

Net Income 14,330

Statement of Retained Earnings

December 31, 2016

Net Income 14,330

Dividends (2,200)

Balance, December 31, 2016 12,130

Balance Sheet

December 31, 2016

Assets:

Cash 42,310

Accounts Receivable 2,400

Office Supplies 420

Prepaid Insurance 900

Total current assets $46,030

Furniture 13,300

Accumulated

Depreciation (400) 12,900

Total assets $58,930

Liabilities + Equity:

Salaries Payable 1,100

Unearned Revenue 4,200

Common Stock 41,500

Retained Earnings 12,130

Total Liabilities + Equity $58,930

Step-by-step explanation:

a) Data:

SMART TOUCH LEARNING

Adjusted Trial Balance

December 31, 2016

Balance

Account Title Debit Credit

Cash 42,310

Accounts Receivable 2,400

Office Supplies 420

Prepaid Insurance 900

Furniture 13,300

Accumulated Depreciation

- Furniture 400

Salaries Payable 1,100

Unearned Revenue 4,200

Common Stock 41,500

Dividends 2,200

Service Revenue 20,400

Salaries Expense 3,300

Depreciation Expense

- Furniture 400

Insurance Expense 300

Utilities Expense 390

Rent Expense 1,600

Supplies Expense 80

Total 67,600 67,600

User Wesley Monaro
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