From the adjusted Trial Balance, prepare an Income Statement and a Retained Earnings Statement for the year ended December 31, 2019

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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From the adjusted Trial Balance, prepare an Income Statement and a Retained Earnings Statement for the year ended December 31, 2019

The adjusted trial balance is prepared as under:
Adjusted Trial Balance for the year ended December 31, 2019.
Debit $
Particulars
Credit $
$(11,700)
$51,000
$1,700
$21,500
$65,000
$95,000
$40,000
Cash
Accounts Receivable
Supplies
Inventory
Land
Building
Equipment
New Delivery Truck
$42,000
Allowance for Doubtful Debts
$5410
Allowance for Doubtful Debts
$5,860
$33,000
$16,800
$18,000
$19,300
Accumulated Depreciation-Buildings
Accumulated Depreciation-New Delivery Truck
Accumulated Depreciation-Equipment
Accounts Payable
Salaries and Wages Payable
$18,000
$2,000
Unearned Rent Revenue
Notes Payable - due in 2020
Interest Payable
$6,000
$3,600
Notes Payable- due after 2020
Share Capital-Ordinary
Retained Earnings
$30,000
$54,400
$75,500
Dividends
$9,200
Sales Revenue
$586,000
$6,000
$750
Rent Revenue
Gain on Sale on Disposal of Plant Assets
Cost of Goods Sold
$410,000
Sales Discount
$320
Purchase Discount
$120
Bad Debt Expenses
Depreciation Expense
Supplies Expense
Interest Expense
Other Operating Expense
Salaries and Wages Expenses
$5,860
$23,400
$1,500
$6,100
$31,000
$83,000
Total
$874,880
$874,880
Transcribed Image Text:The adjusted trial balance is prepared as under: Adjusted Trial Balance for the year ended December 31, 2019. Debit $ Particulars Credit $ $(11,700) $51,000 $1,700 $21,500 $65,000 $95,000 $40,000 Cash Accounts Receivable Supplies Inventory Land Building Equipment New Delivery Truck $42,000 Allowance for Doubtful Debts $5410 Allowance for Doubtful Debts $5,860 $33,000 $16,800 $18,000 $19,300 Accumulated Depreciation-Buildings Accumulated Depreciation-New Delivery Truck Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable $18,000 $2,000 Unearned Rent Revenue Notes Payable - due in 2020 Interest Payable $6,000 $3,600 Notes Payable- due after 2020 Share Capital-Ordinary Retained Earnings $30,000 $54,400 $75,500 Dividends $9,200 Sales Revenue $586,000 $6,000 $750 Rent Revenue Gain on Sale on Disposal of Plant Assets Cost of Goods Sold $410,000 Sales Discount $320 Purchase Discount $120 Bad Debt Expenses Depreciation Expense Supplies Expense Interest Expense Other Operating Expense Salaries and Wages Expenses $5,860 $23,400 $1,500 $6,100 $31,000 $83,000 Total $874,880 $874,880
In the books of P Company
Journal Entries for the year ended December 31, 2019.
Date
Particulars
Debit $
Credit $
Depreciation Expense-Building A/c Dr.
Accumulated Depreciation-Building A/c Cr.
Dec 31, 2019
$3,000
$3,000
Dec 31, 2019
Depreciation Expense-Equipment A/c Dr.
$3,600
Accumulated Depreciation-Equipment A/c Cr.
$3,600
Dec 31, 2019
Cash A/c Dr.
$3,500
$2,250
Accumulated Depreciation-Delivery Truck A/c Dr.
Delivery Truck A/c Cr.
Gain on Sale of Delivery Truck A/c Cr.
$5,000
$750
$42,000
New Delivery Truck A/c Dr.
Cash A/c Cr.
Apr 1, 2019
$42,000
Depreciation Expense-New Delivery Truck A/c Dr.
Accumulated Depreciation-New Delivery Truck A/c Cr.
Dec 31, 2019
$16,800
$16,800
Dec 12, 2019
Inventory A/c Dr.
$12,000
Accounts Payable A/c Cr.
Accounts Payable A/c Dr.
$12,000
Dec 22, 2019
$12,000
Cash A/c Cr.
$11,880
Discount Earned A/c Cr.
$120
Dec 17, 2019
Accounts Receivable A/c Dr.
$16,000
Sales Revenue A/c Cr.
$16,000
Dec 17, 2019
Cost of Goods Sold A/c Dr.
$10,000
Inventory A/c Cr.
Cash A/c Dr.
$10,000
Dec 26, 2019
$15,680
Discount Allowed or Expense A/c Dr.
$320
Accounts Receivable A/c Cr.
$16,000
Dec 31, 2019
Bad Debt Expense A/c Dr.
$5,860
Allowance for Doubtful Debt A/c Cr.
$5,860
Salaries and Wages Expense A/c Dr.
Salaries and Wages Payable A/c Cr.
Dec 31, 2019
$18,000
$18,000
Dec 31, 2019 Supplies Expense A/c Dr.
$1,500
Supplies A/c Cr.
$1,500
Dec 31, 2019
Interest Expense-Short Term Notes Payable A/c Dr.
$600
$3,000
Interest Expense-Long Term Notes Payable A/c Dr.
Interest Payable A/c Cr.
$3,600
Dec 1, 2019
Unearned Rent Revenue A/c Dr.
$6,000
Rent Revenue A/c Cr.
$6,000
Total
$172,110
$172,110
Transcribed Image Text:In the books of P Company Journal Entries for the year ended December 31, 2019. Date Particulars Debit $ Credit $ Depreciation Expense-Building A/c Dr. Accumulated Depreciation-Building A/c Cr. Dec 31, 2019 $3,000 $3,000 Dec 31, 2019 Depreciation Expense-Equipment A/c Dr. $3,600 Accumulated Depreciation-Equipment A/c Cr. $3,600 Dec 31, 2019 Cash A/c Dr. $3,500 $2,250 Accumulated Depreciation-Delivery Truck A/c Dr. Delivery Truck A/c Cr. Gain on Sale of Delivery Truck A/c Cr. $5,000 $750 $42,000 New Delivery Truck A/c Dr. Cash A/c Cr. Apr 1, 2019 $42,000 Depreciation Expense-New Delivery Truck A/c Dr. Accumulated Depreciation-New Delivery Truck A/c Cr. Dec 31, 2019 $16,800 $16,800 Dec 12, 2019 Inventory A/c Dr. $12,000 Accounts Payable A/c Cr. Accounts Payable A/c Dr. $12,000 Dec 22, 2019 $12,000 Cash A/c Cr. $11,880 Discount Earned A/c Cr. $120 Dec 17, 2019 Accounts Receivable A/c Dr. $16,000 Sales Revenue A/c Cr. $16,000 Dec 17, 2019 Cost of Goods Sold A/c Dr. $10,000 Inventory A/c Cr. Cash A/c Dr. $10,000 Dec 26, 2019 $15,680 Discount Allowed or Expense A/c Dr. $320 Accounts Receivable A/c Cr. $16,000 Dec 31, 2019 Bad Debt Expense A/c Dr. $5,860 Allowance for Doubtful Debt A/c Cr. $5,860 Salaries and Wages Expense A/c Dr. Salaries and Wages Payable A/c Cr. Dec 31, 2019 $18,000 $18,000 Dec 31, 2019 Supplies Expense A/c Dr. $1,500 Supplies A/c Cr. $1,500 Dec 31, 2019 Interest Expense-Short Term Notes Payable A/c Dr. $600 $3,000 Interest Expense-Long Term Notes Payable A/c Dr. Interest Payable A/c Cr. $3,600 Dec 1, 2019 Unearned Rent Revenue A/c Dr. $6,000 Rent Revenue A/c Cr. $6,000 Total $172,110 $172,110
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