Given the adjusted trial balance below, prepare (in good form) an income stateme
ID: 2584782 • Letter: G
Question
Given the adjusted trial balance below, prepare (in good form) an income statement, statement of owner's equity, and balance sheet. The name of the business is Duncore Secretarial Service and the accounting period coincides with the calendar year.
Duncore Secretarial Service
Adjusted Trial Balance
December 31, 2010
Cash
$ 265
Accounts Receivable
600
Supplies
10
Prepaid Insurance
10
Office Equipment
1,000
Accumulated Depreciation–Office Equipment
$ 150
Accounts Payable
600
Salaries Payable
35
Marina Duncore, Capital
700
Service Revenue
1,100
Salaries Expense
560
Supplies Expense
40
Insurance Expense
50
Depreciation Expense–Office Equipment
50
______
$2,585
$2,585
Duncore Secretarial Service
Adjusted Trial Balance
December 31, 2010
Cash
$ 265
Accounts Receivable
600
Supplies
10
Prepaid Insurance
10
Office Equipment
1,000
Accumulated Depreciation–Office Equipment
$ 150
Accounts Payable
600
Salaries Payable
35
Marina Duncore, Capital
700
Service Revenue
1,100
Salaries Expense
560
Supplies Expense
40
Insurance Expense
50
Depreciation Expense–Office Equipment
50
______
$2,585
$2,585
Explanation / Answer
Duncore Secretarial Service Income Statement For the year ended December 31, 2010 Income Service revenue $ 1,100 Less: Expenses Salaries expense $ 560 Supplies Expenses $ 40 Insurance expense $ 50 Depreciation expense - office equipment $ 50 Total expenses $ 700 Net income $ 400 Duncore Secretarial Service Statement of stock holders equity Balance on january 1 $ 700 Net income $ 400 Drawings $ - Stock holders equity $ 1,100 Duncore Secretarial Service Balance Sheet Dec-31 Assets Liabilities Cash $ 265 Accounts Payable $ 600 Accounts Receiveble $ 600 Salaries payable $ 35 Supplies $ 10 Prepaid insurance $ 10 Total Liabilities $ 635 Total current assets $ 885 Office equipment $ 1,000 Less: Accumulated depreciation $ (150) Office equipment (net) $ 850 Stock Holders Equity Stock Holders Equity $ 1,100 Total Assets $ 1,735 Total Liabilities and stockholders equity $ 1,735
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