Metlock Company was organized on Apri 1, 2019. The company prepares quarterly fi
ID: 2550939 • Letter: M
Question
Metlock Company was organized on Apri 1, 2019. The company prepares quarterly financial statements. The adjusted trial balance amounts at June 30 are shown below Debit $ 6,900 Accumulated Depreciation-Equipment $800 4,400 800 400 50 400 12,880 11,300 1,300 $32,330 Cash Accounts Receivabke Prepaid Rent Supples Equipment 480 800 900 Notes Payable Accounts Payable Salaries and Wages Payable 12,400 Interest Payable 600 Uneamed Rent Revenue Salaries and Wages Expense 7,800 Common Stock Rent Expense Depreciation Expense Supples Expense Utlities Expense Interest Expense 1,100 Service Revenue 800 Rent Revenue 200 300 50 $32,330 Determine the net income for the quarter Apnil 1 to June 30. Net income2750 Determine the total assets and total lablities at June 30, 2019, for Metlock Company. Yang Company Total assets $ 21480 Total labidies 5650 Determine the amount that appears for Retained Earnings at June 30, 2019 Retained Eamings, June 30Explanation / Answer
Answer a.
Net Income = Service Revenue + Rent Revenue - Salaries and Wages Expense - Rent Expense - Depreciation Expense - Supplies Expense - Utilities Expense - Interest Expense
Net Income = $11,300 + $1,300 - $7,800 - $1,100 - $800 - $200 - $300 - $50
Net Income = $2,350
Answer b.
Total Assets = Cash + Accounts Receivable + Prepaid Rent + Supplies + Equipment - Accumulated Depreciation-Equipment
Total Assets = $6,900 + $480 + $800 + $900 + $12,400 - $800
Total Assets = $20,680
Total Liabilities = Notes Payable + Accounts Payable + Salaries and Wages Payable + Interest Payable + Unearned Rent Revenue
Total Liabilities = $4,400 + $800 + $400 + $50 + $400
Total Liabilities = $6,050
Answer b.
Retained Earnings, June 30 = Total Assets - Total Liabilities - Common Stock + Net Income - Dividends
Retained Earnings, June 30 = $20,680 - $6,050 - $12,880 + $2,350 - $600
Retained Earnings, June 30 = $3,500