From the following Company B adjusted trial balance, prepare simple financial statements, as follows:Income StatementRetained Earnings StatementBalance Sheet Adjusted Trial BalanceDebitCredit$ 77,80019,5007,650CashAccounts receivableSuppliesAccounts payableTaxes payable$ 8,5005,35035,00095,300Common stockFees earned revenueOperating expense39,200144,150144,150

Solution:- 1)Preparation of Income Statement as follows under:- Income statement is the one of the…

Answered: From the following Company B adjusted…

From the following Company B adjusted trial balance, prepare simple financial statements, as follows: Income Statement Retained Earnings Statement Balance Sheet

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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Question

From the following Company B adjusted trial balance, prepare simple financial statements, as follows:

Income Statement
Retained Earnings Statement
Balance Sheet

Adjusted Trial Balance
Debit
Credit
$ 77,800
19,500
7,650
Cash
Accounts receivable
Supplies
Accounts payable
Taxes payable
$ 8,500
5,350
35,000
95,300
Common stock
Fees earned revenue
Operating expense
39,200
144,150
144,150

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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