The adjusted trial balance of Party Piano Tuning Service, at fiscal year end May

ID: 2348731 • Letter: T

Question

The adjusted trial balance of Party Piano Tuning Service, at fiscal year end May 31, 2012, follows. PARTY PIANO TUNING SERVICE Adjusted Trial Balance May 31, 2012 Trial Balance Account Title Debit Credit Cash $ 12,600 Accounts receivable 10,800 Supplies 1,900 Equipment 25,900 Accumulated depreciation $ 12,500 Accounts payable 3,300 Unearned service revenue 4,700 Salary payble 800 Note payable 14,000 Lindros, capital 13,600 Lindros, drawing 38,000 Service revenue 65,000 Depreciation expense 5,600 Salary expense 9,600 Utilities expense 3,900 Insurance expense 3,700 Supplies expense 1,900 Total 113,900 $ 113,900 3. Prepare the year-end balance sheet. 4. Which financial statement reports Party The adjusted trial balance of Party Piano Tuning Service, at fiscal year end May 31, 2012, follows. PARTY PIANO TUNING SERVICE Adjusted Trial Balance May 31, 2012 Trial Balance Account Title Debit Credit Cash $ 12,600 Accounts receivable 10,800 Supplies 1,900 Equipment 25,900 Accumulated depreciation $ 12,500 Accounts payable 3,300 Unearned service revenue 4,700 Salary payble 800 Note payable 14,000 Lindros, capital 13,600 Lindros, drawing 38,000 Service revenue 65,000 Depreciation expense 5,600 Salary expense 9,600 Utilities expense 3,900 Insurance expense 3,700 Supplies expense 1,900 Total 113,900 $ 113,900

Explanation / Answer

3. Year end balance sheet:

cash

12600

accounts rec

10800

supplies

1900

equip

25900

accum. Dep.

12500

accounts pay.

3300

unearned rev

4700

salary payable

800

note payable

14000

lindros cap

15900

51200

The Lindos capital account = the beginning balance – withdrawals + revenue – expenses = 13600-38000+65000-5600-9600-3900-3700-1900 = 15900. The withdrawals, revenues and expenses are closed.

4. Income statement. Yes, they were successful. Revenue was greater than expenses by 40,300, which would be income of 40,300.

5. Balance sheet