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b- Prepare the following financial statements: Income statement Statement of owner's equity Balance sheet

b- Prepare the following financial statements: Income statement Statement of owner's equity Balance sheet

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Below is the unadjusted trial balance for Al Ain Company as on 31/July/2023 along with some additional information, the company prepares the financial statements monthly: Account Dr Balance Cr Balance Cash $30,400 Supplies 5,000 Prepaid Insurance 1,200 Equipment 10,000 Notes payable 10,000 Accounts payable 5,000 Unearned Revenue 2,400 Owner's Capital 20,000 Owner's Drawing 1,000 20,000 8,000 1,800 57,400 57,400 Service Revenue Salaries Expense Rent Expense Total Additional Information: - - An inventory count at the close of business on July 31 reveals that $2,000 of supplies are still on hand. Insurance of $100 expires each month. Depreciation on the equipment is $960 a year. Analysis reveals that the company performed $800 of services that was considered as unearned revenue in July. The company performed services worth $400 that were not billed to clients on or before July 31 The company signed a three-month note payable in the amount of $10,000 on July 1. The note requires the company to pay interest at an annual rate of 12%. There is $2,400 salaries accrued that are not recorded yet.
Transcribed Image Text:Below is the unadjusted trial balance for Al Ain Company as on 31/July/2023 along with some additional information, the company prepares the financial statements monthly: Account Dr Balance Cr Balance Cash $30,400 Supplies 5,000 Prepaid Insurance 1,200 Equipment 10,000 Notes payable 10,000 Accounts payable 5,000 Unearned Revenue 2,400 Owner's Capital 20,000 Owner's Drawing 1,000 20,000 8,000 1,800 57,400 57,400 Service Revenue Salaries Expense Rent Expense Total Additional Information: - - An inventory count at the close of business on July 31 reveals that $2,000 of supplies are still on hand. Insurance of $100 expires each month. Depreciation on the equipment is $960 a year. Analysis reveals that the company performed $800 of services that was considered as unearned revenue in July. The company performed services worth $400 that were not billed to clients on or before July 31 The company signed a three-month note payable in the amount of $10,000 on July 1. The note requires the company to pay interest at an annual rate of 12%. There is $2,400 salaries accrued that are not recorded yet.
b- Prepare the following financial statements: - - - Income statement Statement of owner's equity Balance sheet
Transcribed Image Text:b- Prepare the following financial statements: - - - Income statement Statement of owner's equity Balance sheet
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