(The following information applies to the questions displayed below.) Learn to P
ID: 2409305 • Letter: #
Question
(The following information applies to the questions displayed below.) Learn to Play, Inc., is a one-person company that provides private piano lessons. Its unadjusted trial balance at December 31, 2013, follows along with information about selected accounts. Credit Account Names Cash Supplies Unearned Revenue Debit $ 24,800 400 $ 1,600 Salaries and Wages Payable O Income Tax Payable 0 Interest Payable 0 Further Information As reported on December 31 bank statement. Based on count, only $250 of supplies still exist. of this amount, $600 was received for December lessons and $1,000 for January lessons. The employee was paid $600 for 10 days of work through December 29. She has not yet been paid for work on December 30 and 31. The company has paid last year's income taxes but not this year's taxes. The company has not paid the $120 of interest owed on its note payable for the current period. This one-year note was taken out this year on December 1. This amount was contributed for common stock in prior years. This is the balance reported at the end of last year. Most customers pay cash for lessons each time they are provided, but some customers paid in advance. The company's employee worked through December 31. This is the cost of supplies used through November 30. The company has not paid the $120 of interest owed on its note payable for the current period. The company has an average tax rate of 20%. Note Payable Common Stock Retained Earnings Service Revenue 14,400 1,100 2,800 25,300 Salaries and Wages Expense Supplies Expense Interest Expense 19,100 900 o Income Tax Expense Totals $ 45,200 $ 45,200Explanation / Answer
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4-a.
4-b
Working:
LEARN TO PLAY, INC Unadjusted Income Statement Service Revenue 25300 Expenses: Salaries and wages expense 19100 Supplies Expense 900 Total Expenses 20000 Income before income tax 5300 Income tax expense (20%) 1060 Net income 4240Related Questions
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