2. Using the Adjusted Trial Balance shown below, prepare (a) an Income Statement

Question

2. Using the Adjusted Trial Balance shown below, prepare (a) an Income Statement and (b) a Statement of Retained Earnings for Coolidge Repairs Coolidge Repairs Adjusted Trial Balance July 31, 2014 Cash $19,100 Accounts Receivable 71,700 Supplies 1,400 Equipment 22,300 Accumulated Depreciation: Equipment $8,400 Accounts payable 17,000 Notes payable 4,500 Income taxes payable 23,800 Capital stock 25,300 Retained earnings 6,200 Dividends 12,400 Fees earned 112,000 Rent expense 8,000 Wages expense 33,200 Supplies expense 3,500 Utilities expense 1,900 Depreciation expense: equipment 920 Income Tax Expense 22,780 _______ Totals $197,200 $197,200 Coolidge Repairs Income Statement For the Month ended July 31, 2014 Coolidge Repairs Statement of Retained Earnings For the Month ended July 31, 2014

Explanation / Answer

Coolidge Repairs Income Statement for the month ended July 31, 2014 Income $ Fees earned                             1,12,000 Operating Expenses Rent Expense                      8,000 Wages Expense                    33,200 Supplies Expense                      3,500 Utilities Expense                      1,900 Depreciation- Equipment                          920 Total Operating Expenses                                 47,520 Income before Income Taxes                                 64,480 Income Tax Expense                                 22,780 Net Income                                 41,700 Coolidge Repairs Statement of Retained Earnings for the month ended July 31, 2014 Retained Earnings (Opening)                                   6,200 Add: Net Income                                 41,700                                 47,900 Less: Dividends                                 12,400 Retained Earnings -July 31,2014                                 35,500 Workings Coolidge Repairs Balancesheet as on July 31, 2014 Assets Cash                                 19,100 Accounts Receivable                                 71,700 Supplies                                   1,400 Equipment                    22,300 Less: Accumulated Depreciation                      8,400                                 13,900 Total Assets                             1,06,100 Liabilities Accounts payable                                 17,000 Notes Payable                                   4,500 Income Tax Payable                                 23,800 Stakeholder's Equity: Capital stock                    25,300 Add: Retained Earnings                    35,500                                 60,800 Total Liabilities                             1,06,100

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