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Below are the May 31, 2015, year-end financial statements for Gillespie Corp., prepared by a sum- mer student. There were no share capital transactions in the year just ended. Gillespie Corp. Income Statement For the Year Ended May 31, 2015 Revenues $382,000 25,000 Service revenue Unearned service revenue Rent revenue 90,000 Expenses Warehouse rent expense 100,000 Prepaid advertising Salaries and benefits expense Dividends 17,000 110,000 10,000 Utilities expense Insurance expense Shop supplies expense Net income 42,000 15,000 6,000 $197,000 Gillespie Corp. Statement of Changes in Equity At May 31, 2015 Share Retained Total Equity $145,000 197,000 $342,000 Capital $5,000 Earnings $140,000 Opening balance Net income 197,000 Ending balance $5,000 $337,000 Gillespie Corp. Balance Sheet For the Year Ended May 31, 2015 Assets Liabilities $ 50,000 85,000 45,000 240,000 52,000 Cash Accounts payable $130,000 Accounts receivable Office equipment Building Shop supplies Total liabilities $130,000 Equity Share capital Retained earnings $ 5,000 337,000 $472,000 Total equity Total liabilities and equity 342,000 $472,000 Total assets Required: Using the data above, prepare a corrected set of financial statements

Below are the May 31, 2015, year-end financial statements for Gillespie Corp., prepared by a sum- mer student. There were no share capital transactions in the year just ended. Gillespie Corp. Income Statement For the Year Ended May 31, 2015 Revenues $382,000 25,000 Service revenue Unearned service revenue Rent revenue 90,000 Expenses Warehouse rent expense 100,000 Prepaid advertising Salaries and benefits expense Dividends 17,000 110,000 10,000 Utilities expense Insurance expense Shop supplies expense Net income 42,000 15,000 6,000 $197,000 Gillespie Corp. Statement of Changes in Equity At May 31, 2015 Share Retained Total Equity $145,000 197,000 $342,000 Capital $5,000 Earnings $140,000 Opening balance Net income 197,000 Ending balance $5,000 $337,000 Gillespie Corp. Balance Sheet For the Year Ended May 31, 2015 Assets Liabilities $ 50,000 85,000 45,000 240,000 52,000 Cash Accounts payable $130,000 Accounts receivable Office equipment Building Shop supplies Total liabilities $130,000 Equity Share capital Retained earnings $ 5,000 337,000 $472,000 Total equity Total liabilities and equity 342,000 $472,000 Total assets Required: Using the data above, prepare a corrected set of financial statements

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 are the May 31, 2015, year-end financial statements for Gillespie Corp., prepared by a sum- mer student. There were no share capital transactions in the year just ended. Gillespie Corp. Income Statement For the Year Ended May 31, 2015 Revenues $382,000 25,000 Service revenue Unearned service revenue Rent revenue 90,000 Expenses Warehouse rent expense Prepaid advertising Salaries and benefits expense Dividends Utilities expense Insurance expense Shop supplies expense Net income 100,000 17,000 110,000 10,000 42,000 15,000 6,000 $197,000 Gillespie Corp. Statement of Changes in Equity At May 31, 2015 Share Retained Total Capital $5,000 Earnings $140,000 197,000 $337,000 Equity $145,000 197,000 $342,000 Opening balance Net income Ending balance $5,000 Gillespie Corp. Balance Sheet For the Year Ended May 31, 2015 Assets Liabilities Cash $ 50,000 Accounts payable $130,000 85,000 45,000 240,000 52,000 Accounts receivable Office equipment Building Shop supplies Total liabilities $130,000 Equity Share capital Retained earnings $ 5,000 337,000 $472,000 Total equity Total liabilities and equity 342,000 $472,000 Total assets Required: Using the data above, prepare a corrected set of financial statements
Transcribed Image Text:Below are the May 31, 2015, year-end financial statements for Gillespie Corp., prepared by a sum- mer student. There were no share capital transactions in the year just ended. Gillespie Corp. Income Statement For the Year Ended May 31, 2015 Revenues $382,000 25,000 Service revenue Unearned service revenue Rent revenue 90,000 Expenses Warehouse rent expense Prepaid advertising Salaries and benefits expense Dividends Utilities expense Insurance expense Shop supplies expense Net income 100,000 17,000 110,000 10,000 42,000 15,000 6,000 $197,000 Gillespie Corp. Statement of Changes in Equity At May 31, 2015 Share Retained Total Capital $5,000 Earnings $140,000 197,000 $337,000 Equity $145,000 197,000 $342,000 Opening balance Net income Ending balance $5,000 Gillespie Corp. Balance Sheet For the Year Ended May 31, 2015 Assets Liabilities Cash $ 50,000 Accounts payable $130,000 85,000 45,000 240,000 52,000 Accounts receivable Office equipment Building Shop supplies Total liabilities $130,000 Equity Share capital Retained earnings $ 5,000 337,000 $472,000 Total equity Total liabilities and equity 342,000 $472,000 Total assets Required: Using the data above, prepare a corrected set of financial statements
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