The adjusted trial balance for Forrest Realty, Inc. at for year ended December 3
ID: 2600062 • Letter: T
Question
The adjusted trial balance for Forrest Realty, Inc. at for year ended December 31, 2014 follows: FORREST REALTY, INC. ADJUSTED TRIAL BALANCE DECEMBER 31, 2014 ACCOUNT DEBIT CREDIT 6,500 12,100 2,500 500 Cas Accounts Receivable... Prepaid Rent. Supplies. Equipment Accumulated Depreciation, Equ Accounts Payable. Unearned Service Revenue Interest Payable Salary Payable.. Notes Payabl. 42,500 $ 11,300 4,300 2,800 720 9,000 8,000 13,660 Withdrawals, Forrest..5,000 Service Revenue 85,000 420 40,000 siSalary Expense... Rent Expense 20,000 2,500 1,800 1,100 700 Depreciation Expense, Equipment XUtilities Expense Xi nterest Expense. Supplies Expense 135,200 135,200 Total REQUIREMENTS: Prepare an income statement, statement of owner's equity and balance sheet for Forrest Realty for year ended December 31, 2014.Explanation / Answer
1) Income Statement Particulars Amount$ Amount$ Income Service Revenue $ 85,000 Interest Revenue $ 420 Total Revenue $ 85,420 Less: Expenses Salary Expenses $ 40,000 Rent Expenses $ 20,000 Depreciation Expenses, Equipment $ 2,500 Utilities Expenses $ 1,800 Interest Expenses $ 1,100 Supplies Expenses $ 700 Total Expenses $ 66,100 Net Income $ 19,320 2)` Statemnt of Owner's Equity Particulars Amount$ Capital, Forrest 13,660 Less: Withdrawal, Forrest 5000 Add: Net Income $ 19,320 Owner's Equity $ 27,980 3) Balance Sheet Liabilities Amount$ Assets Amount$ Owner's Equity $ 27,980 Assets $ 6,500 Accounts Receivable $ 12,100 Accounts Payable $ 4,300 Prepaid Rent $ 2,500 Unearned Service Revenue $ 2,800 Interest Payable $ 720 Supplies $ 500 Salary Payable $ 9,000 Equipments $42,500 Notes Payable $ 8,000 Accumulated Dep ($11,300) $ 31,200 Total Liabilities $ 52,800 Total Assets $ 52,800
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