Preparing a worksheet The trial balance of telegraphic link at November 30, foll
ID: 2419043 • Letter: P
Question
Preparing a worksheet
The trial balance of telegraphic link at November 30, follows:
Telegraphic Link Trial Balance November 30, 2014
Balance
Account title
Debit
Credit
Cash
$4,000
Accounts receivable
3,200
Prepaid rent
1,900
Office supplies
3,000
Equipment
34,800
Accumulated depreciation—equipment
$1,600
Accounts payable
5,400
Salaries payable
Common stock
35,700
Dividends
2,100
Service revenue
8,600
Depreciation expense—equipment
Salaries expense
1,700
Rent expense
Utilities expense
600
Supplies expense
Total
$51,300
$51,300
Additional information at November 30, 2014
Accrued service revenue, $600.
Depreciation $300.
Accrued salaries expense $800.
Prepaid rent expire, $500.
Office supplies, $100.
Requirements
Complete Telegraphic Link’s worksheet for the month ended November 30, 2014.
How much was net income for November.
Balance
Account title
Debit
Credit
Cash
$4,000
Accounts receivable
3,200
Prepaid rent
1,900
Office supplies
3,000
Equipment
34,800
Accumulated depreciation—equipment
$1,600
Accounts payable
5,400
Salaries payable
Common stock
35,700
Dividends
2,100
Service revenue
8,600
Depreciation expense—equipment
Salaries expense
1,700
Rent expense
Utilities expense
600
Supplies expense
Total
$51,300
$51,300
Explanation / Answer
SOLUTION :
ACCOUNT TITLE
TRIAL BALANCE
ADJUSTMENTS
ADJUSTED TRIAL BALANCE
INCOME STATEMENT
BALANCE SHEET
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
CASH
4000
4000
4000
ACCOUNTS RECEIVABLE
3200
(A) 600
3800
3800
PREPAID RENT
1900
(D) 500
1400
1400
SUPPLIES
3000
(E) 100
2900
2900
EQUIPMENT
34800
34800
34800
ACCUMULATED DEPRECIATION
1600
(B) 300
1900
1900
ACCOUNTS PAYABLE
5400
5400
5400
SALARY PAYABLE
(C) 800
800
800
COMMON STOCK
35700
35700
35700
DIVIDEND
2100
2100
2100
SERVICE REVENUE
8600
(A) 600
9200
9200
DEPRECIATION EXPENSE
(B) 300
300
300
SALARY EXPENSE
1700
(C) 800
2500
2500
RENT EXPENSE
(D) 500
500
500
UTILITIES EXPENSE
600
600
600
SUPPLIES EXPENSE
(E) 100
100
100
51300
51300
2300
2300
53000
53000
4000
9200
49000
43800
NET INCOME
5200
5200
9200
9200
49000
49000
Reference
Adjustment
A
Accrued service revenue, $600.
B
Depreciation $300.
C
Accrued salaries expense $800.
D
prepaid rent expire, $500.
E
Office supplies, $100.
ASSETS
AMOUNT
LIABILITIES
AMOUNT
CASH
4000
ACCOUNTS PAYABLE
5400
SUPPLIES
3,800
SALARY PAYABLE
800
PREPAID RENT
1,400
TOTAL LIABILITIES
6,200
SUPPLIES
2,900
OWNER’S EQUITY
EQUIPMENT
34800
COMMON STOCK
38,800
ACCUMULATED. DEPRECIATION
-1,900
TOTAL LIABILITIES AND
TOTAL ASSETS
45000
OWNER’S EQUITY
45000
ACCOUNT TITLE
TRIAL BALANCE
ADJUSTMENTS
ADJUSTED TRIAL BALANCE
INCOME STATEMENT
BALANCE SHEET
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
CASH
4000
4000
4000
ACCOUNTS RECEIVABLE
3200
(A) 600
3800
3800
PREPAID RENT
1900
(D) 500
1400
1400
SUPPLIES
3000
(E) 100
2900
2900
EQUIPMENT
34800
34800
34800
ACCUMULATED DEPRECIATION
1600
(B) 300
1900
1900
ACCOUNTS PAYABLE
5400
5400
5400
SALARY PAYABLE
(C) 800
800
800
COMMON STOCK
35700
35700
35700
DIVIDEND
2100
2100
2100
SERVICE REVENUE
8600
(A) 600
9200
9200
DEPRECIATION EXPENSE
(B) 300
300
300
SALARY EXPENSE
1700
(C) 800
2500
2500
RENT EXPENSE
(D) 500
500
500
UTILITIES EXPENSE
600
600
600
SUPPLIES EXPENSE
(E) 100
100
100
51300
51300
2300
2300
53000
53000
4000
9200
49000
43800
NET INCOME
5200
5200
9200
9200
49000
49000