d. Cash Payments and Accounts Payable QUESTION 5 (20 POINTS) OHNSON ARTS SUPPLIE

ID: 2598494 • Letter: D

Question

d. Cash Payments and Accounts Payable QUESTION 5 (20 POINTS) OHNSON ARTS SUPPLIES ADJUSTED TRIAL BALANCE DECEMBER 31, 2018 ACCOUNT TITLE BALANCE DEBIT CREDIT Cash Office Supplies Prepaid Rent Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Unearned Revenue Notes Payable (long term) Johnson, Capital Johnson, Withdrawals Service Revenue $14,500 2,700 1,400 54,000 $5,400 4,100 1,000 4,900 4,900 44,400 1,200 16,500 Salaries Expense 4,200 Rent Expense Depreciation Expense- Equipment Supplies Expense Utilities Expense Total 1,900 400 200 700 81,000 81,000

Explanation / Answer

(1).

Income Statement

For the year ended December 31, 2018

Service Revenue

$16500

Less:

Salaries expense

$4200

Rent expense

$1900

Depreciation expense

$400

Supplies expense

$200

Utilities expense

$700

($7400)

Net income

$9100

(2).

Statement of Owner’s Equity

For December 31, 2018

Johnson, capital……………..….$44400

Less: Johnson, Withdrawals……($1200)

$43200

Add: Retained earnings (Net income)

$9100

Ending owner’s equity

$52300

(3).

Balance Sheet

For December 31, 2018

ASSETS

Current Assets;

Cash

$14500

Prepaid expense

$1400

Office supplies

$2700

Equipment…………………$54000

Less: Accumulated Dep…..($5400)

$48600

Total Assets

$67200

Liabilities & Shareholders’ Funds;

Accounts payable

$4100

Salary payable

$1000

Unearned revenue

$4900

Notes payable