proprietorship at December 31, 2015, before adjustimen made I 1. The following i
ID: 2500865 • Letter: P
Question
proprietorship at December 31, 2015, before adjustimen made I 1. The following is the trial balance for David Slater , Attorney, a s have sole r David Slater been DAVID SLATER, ATTORNEY Trial Balance December 31, 2015 Account Title Balance Credit Debit Cash $ 49,000 42,000 2,000 20,000 75,000 28,000 Accounts Receivable Office Supplies Law Library Building Land $2,000 Accounts Payable 2,000 1,000 64,000 62,000 Unearned Revenue Utilities Payable Notes Payable Owner's Equity Withdrawals Service Revenue 57,000 185,000 25,000 12,000 6000 $316,000 Salaries Expense Rent Expense Utilities Expense Total $ 316,0 A. The building, which was purchased on December 31,2014 for $75,000, is expected to have a useful life of 35 years and a salvage value of $5,000. The straigh line method of depreciation is used. B. As of December 31,2015, David Slater had not paid his employees $2,000 of salaries that the employees had earned. It was determined that S . It was determined that $1,000 of office supplies had been used during 2015Explanation / Answer
DAVID SALTER ATTORNEY
Worksheet
December. 31, 2015
Unadjusted Trial
Adjustments
Adjusted Trial
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 49,000
$ 49,000
Accounts Receivables
$ 42,000
$ 42,000
Office Supplies (C)
$ 2,000
$ 1,000
$ 1,000
Law Library
$ 20,000
$ 20,000
Building
$ 75,000
$ 75,000
Accumulated Depreciation- Building (A)
$ 2,000
$ 2,000
Land
$ 28,000
$ 28,000
Accounts Payable
$ 2,000
$ 2,000
Salaries Payable (B)
$ 2,000
$ 2,000
Unearned revenue (D)
$ 2,000
$ 1,000
$ 1,000
Utilities payable
$ 1,000
$ 1,000
Notes Payable
$ 64,000
$ 64,000
Owner's Equity
$ 62,000
$ 62,000
Withdrawals
$ 57,000
$ 57,000
Service Revenue (D)
$ 185,000
$ 1,000
$ 186,000
Salaries expenses (B)
$ 25,000
$ 2,000
$ 27,000
Supplies Expense (C)
$ 1,000
$ 1,000
Depreciation Expense - Building (75000-5000)/35 (A)
$ 2,000
$ 2,000
Rent Expenses
$ 12,000
$ 12,000
Utilties Expenses
$ 6,000
$ 6,000
Total
$ 316,000
$ 316,000
$ 6,000
$ 6,000
$ 320,000
$ 320,000
DAVID SALTER ATTORNEY
Income Statement
For the year ending December. 31, 2015
Service Revenue
$ 186,000
Expenses :
Salaries expenses
$ 27,000
Supplies Expense
$ 1,000
Depreciation Expense - Building
$ 2,000
Rent Expenses
$ 12,000
Utilties Expenses
$ 6,000
Total Expenses
$ 48,000
Net income
$ 138,000
DAVID SALTER ATTORNEY
Statement of Owner's Equity
For the year ending December. 31, 2015
Ownerls Equity unadjusted balance
$ 62,000
Add: Net income
$ 138,000
Less: Withdrawals
$ (57,000)
Owner's Equity Ending balance
$ 143,000
DAVID SALTER ATTORNEY
Balance Sheet
December. 31, 2015
ASSETS:
Current Assets:
Cash
$ 49,000
Accounts Receivables
$ 42,000
Office Supplies
$ 1,000
$ 92,000
Non Current Assets:
Law Library
$ 20,000
Building
$ 75,000
Accumulated Depreciation- Building
$ (2,000)
Land
$ 28,000
$ 121,000
TOTAL ASSETS
$ 213,000
LIABILITIES AND EQUITY:
Liabilities:
Accounts Payable
$ 2,000
Salaries Payable
$ 2,000
Unearned revenue
$ 1,000
Utilities payable
$ 1,000
Notes Payable
$ 64,000
$ 70,000
Owner's Equity
$ 143,000
TOTAL LIABILITIES AND EQUITY
$ 213,000
DAVID SALTER ATTORNEY
Worksheet
December. 31, 2015
Unadjusted Trial
Adjustments
Adjusted Trial
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 49,000
$ 49,000
Accounts Receivables
$ 42,000
$ 42,000
Office Supplies (C)
$ 2,000
$ 1,000
$ 1,000
Law Library
$ 20,000
$ 20,000
Building
$ 75,000
$ 75,000
Accumulated Depreciation- Building (A)
$ 2,000
$ 2,000
Land
$ 28,000
$ 28,000
Accounts Payable
$ 2,000
$ 2,000
Salaries Payable (B)
$ 2,000
$ 2,000
Unearned revenue (D)
$ 2,000
$ 1,000
$ 1,000
Utilities payable
$ 1,000
$ 1,000
Notes Payable
$ 64,000
$ 64,000
Owner's Equity
$ 62,000
$ 62,000
Withdrawals
$ 57,000
$ 57,000
Service Revenue (D)
$ 185,000
$ 1,000
$ 186,000
Salaries expenses (B)
$ 25,000
$ 2,000
$ 27,000
Supplies Expense (C)
$ 1,000
$ 1,000
Depreciation Expense - Building (75000-5000)/35 (A)
$ 2,000
$ 2,000
Rent Expenses
$ 12,000
$ 12,000
Utilties Expenses
$ 6,000
$ 6,000
Total
$ 316,000
$ 316,000
$ 6,000
$ 6,000
$ 320,000
$ 320,000
DAVID SALTER ATTORNEY
Income Statement
For the year ending December. 31, 2015
Service Revenue
$ 186,000
Expenses :
Salaries expenses
$ 27,000
Supplies Expense
$ 1,000
Depreciation Expense - Building
$ 2,000
Rent Expenses
$ 12,000
Utilties Expenses
$ 6,000
Total Expenses
$ 48,000
Net income
$ 138,000
DAVID SALTER ATTORNEY
Statement of Owner's Equity
For the year ending December. 31, 2015
Ownerls Equity unadjusted balance
$ 62,000
Add: Net income
$ 138,000
Less: Withdrawals
$ (57,000)
Owner's Equity Ending balance
$ 143,000
DAVID SALTER ATTORNEY
Balance Sheet
December. 31, 2015
ASSETS:
Current Assets:
Cash
$ 49,000
Accounts Receivables
$ 42,000
Office Supplies
$ 1,000
$ 92,000
Non Current Assets:
Law Library
$ 20,000
Building
$ 75,000
Accumulated Depreciation- Building
$ (2,000)
Land
$ 28,000
$ 121,000
TOTAL ASSETS
$ 213,000
LIABILITIES AND EQUITY:
Liabilities:
Accounts Payable
$ 2,000
Salaries Payable
$ 2,000
Unearned revenue
$ 1,000
Utilities payable
$ 1,000
Notes Payable
$ 64,000
$ 70,000
Owner's Equity
$ 143,000
TOTAL LIABILITIES AND EQUITY
$ 213,000
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