Prepare the company\'s income statement for the year ended June 30, 2014. Prepar
ID: 2501224 • Letter: P
Question
Prepare the company's income statement for the year ended June 30, 2014. Prepare the company's statement of owner's equity for the year ended June 30, 2014. Assume that there were no contributions made by the owner during the year. Prepare the company's classified balance sheet in report form at June 30, 2014. Journalize the closing entries. Open the T-accounts using the balances from the adjusted trial balance and post the closing entries to the T-accounts. Prepare the company's post-closing trial balance at June 30, 2014.Explanation / Answer
1. COMPANY INCOME STATEMENT FOR THE YEAR ENDED JUNE 30, 2014
AMOUNT( IN $)
Service Revenue
48200
Insurance Expense
4500
Salaries Expense
33300
Supplies Expense
600
Interest Expense
8800
Utilities Expense
2200
Depreciation Expense - building
7500
Profit/(Loss)
(8700)
2. Company statement of owners equity for the year ended June 30,2014
Particulars
Amount( in $ )
Elias capital
40500
Elias withdrawals
(27900)
Profit/(Loss)
(8700)
Elias capital at end
3900
3. Balance sheet
Liabilities
Amount( in $ )
Assets
Amount( in $ )
Elias capital
3900
Cash
4900
Accounts receivable
5300
Accumulated dep- building
26700
Office supplies
2400
Account payable
19500
Prepaid insurance
1800
Interest payable
8800
Building
74400
Salaries payable
2200
Land
13600
Unearned revenue
1300
Notes payable
40000
102400
102400
AMOUNT( IN $)
Service Revenue
48200
Insurance Expense
4500
Salaries Expense
33300
Supplies Expense
600
Interest Expense
8800
Utilities Expense
2200
Depreciation Expense - building
7500
Profit/(Loss)
(8700)