Create an income statement based on the following information. The unadjusted tr
ID: 2496596 • Letter: C
Question
Create an income statement based on the following information.
The unadjusted trial balance of PS Music as of July 31, 2016, along with the adjustment data for the two months ended July 31, 2016, are shown in Chapter 3. Based upon the adjustment data, the following adjusted trial balance was prepared:
PS Music
ADJUSTED TRIAL BALANCE
July 31, 2016
1
Cash
9,945.00
2
Accounts Receivable
4,150.00
3
Supplies
275.00
4
Prepaid Insurance
2,475.00
5
Office Equipment
7,500.00
6
Accumulated Depreciation-Office Equipment
50.00
7
Accounts Payable
8,350.00
8
Wages Payable
140.00
9
Unearned Revenue
3,600.00
10
Peyton Smith, Capital
9,000.00
11
Peyton Smith, Drawing
1,750.00
12
Income Summary
13
Fees Earned
21,200.00
14
Wages Expense
2,940.00
15
Office Rent Expense
2,550.00
16
Equipment Rent Expense
1,375.00
17
Utilities Expense
1,215.00
18
Music Expense
3,610.00
19
Advertising Expense
1,500.00
20
Supplies Expense
925.00
21
Insurance Expense
225.00
22
Depreciation Expense
50.00
23
Miscellaneous Expense
1,855.00
24
Totals
42,340.00
42,340.00
ACCOUNT TITLE DEBIT CREDIT1
Cash
9,945.00
2
Accounts Receivable
4,150.00
3
Supplies
275.00
4
Prepaid Insurance
2,475.00
5
Office Equipment
7,500.00
6
Accumulated Depreciation-Office Equipment
50.00
7
Accounts Payable
8,350.00
8
Wages Payable
140.00
9
Unearned Revenue
3,600.00
10
Peyton Smith, Capital
9,000.00
11
Peyton Smith, Drawing
1,750.00
12
Income Summary
13
Fees Earned
21,200.00
14
Wages Expense
2,940.00
15
Office Rent Expense
2,550.00
16
Equipment Rent Expense
1,375.00
17
Utilities Expense
1,215.00
18
Music Expense
3,610.00
19
Advertising Expense
1,500.00
20
Supplies Expense
925.00
21
Insurance Expense
225.00
22
Depreciation Expense
50.00
23
Miscellaneous Expense
1,855.00
24
Totals
42,340.00
42,340.00
Explanation / Answer
PS Music Income statement for the month ended July 31,2016 Revenue Fees Earned 21200 Total Revenue 21200 Expenditure Wages Expense 2940 Office Rent Expense 2550 Equipment Rent Expense 1375 Utilities Expense 1215 Music Expense 3610 Advertising Expense 1500 Supplies Expense 925 Insurance Expense 225 Depreciation Expense 50 Miscellaneous Expense 1855 Total Expenses 16245 Net Income 4955
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