Instruction: From the following partial worksheet of Atty. Villanueva for six-month period ended December 31, 2019, prepare the financial statement in good form. Trial Balance Debit Credit Income Statement Credit Debit Balance Sheet Debit Credit Cash on Hand 40,000 50,000 30,000 40,000 50,000 30,000 10,000 20,000 15,000 Cash in Bank Accounts Receivable Note Receivable Prepaid Insurance Office Furniture Accounts Payable Notes Payable М. Сapital M. Drawing Service Income Salaries Expense Supplies Expense Taxes and Licenses Rent Expense Interest Expense 10,000 20,000 15,000 20,000 10,000 77,000 20,000 10,000 77,000 5,000 5,000 150,000 150,000 36,000 8,000 5,000 24,000 2,000 3,000 36,000 8,000 5,000 24,000 2,000 3,000 Bad Debts Allowance for Bad Debts 3,000 3,000 Depreciation Expense Accumulated Depreciation - Furniture Insurance Expense Unused Supplies Interest Income 1,500 1,500 1,500 1,500 10,000 10,000 3,000 3,000 1,000 262,500 262,500 89,500 151,000 173,000 111,500 Net Income 61,500 151,000 151,000 173,000 173,000 61,500 Total
Instruction: From the following partial worksheet of Atty. Villanueva for six-month period ended December 31, 2019, prepare the financial statement in good form. Trial Balance Debit Credit Income Statement Credit Debit Balance Sheet Debit Credit Cash on Hand 40,000 50,000 30,000 40,000 50,000 30,000 10,000 20,000 15,000 Cash in Bank Accounts Receivable Note Receivable Prepaid Insurance Office Furniture Accounts Payable Notes Payable М. Сapital M. Drawing Service Income Salaries Expense Supplies Expense Taxes and Licenses Rent Expense Interest Expense 10,000 20,000 15,000 20,000 10,000 77,000 20,000 10,000 77,000 5,000 5,000 150,000 150,000 36,000 8,000 5,000 24,000 2,000 3,000 36,000 8,000 5,000 24,000 2,000 3,000 Bad Debts Allowance for Bad Debts 3,000 3,000 Depreciation Expense Accumulated Depreciation - Furniture Insurance Expense Unused Supplies Interest Income 1,500 1,500 1,500 1,500 10,000 10,000 3,000 3,000 1,000 262,500 262,500 89,500 151,000 173,000 111,500 Net Income 61,500 151,000 151,000 173,000 173,000 61,500 Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Instruction: From the following partial worksheet of Atty. Villanueva for six-month period ended December 31,
2019, prepare the financial statement in good form.
Income Statement
Balance Sheet
Trial Balance
Debit
40,000
50,000
30,000
10,000
20,000
15,000
Credit
Debit
Credit
Debit
Credit
Cash on Hand
Cash in Bank
40,000
50,000
30,000
10,000
20,000
15,000
Accounts Receivable
Note Receivable
Prepaid Insurance
Office Furniture
Accounts Payable
Notes Payable
M. Capital
M. Drawing
Service Income
Salaries Expense
Supplies Expense
Taxes and Licenses
Rent Expense
Interest Expense
20,000
10,000
77,000
20,000
10,000
77,000
5,000
5,000
150,000
150,000
36,000
8,000
5,000
24,000
2,000
3,000
36,000
8,000
5,000
24,000
2,000
3,000
Bad Debts
Allowance for Bad Debts
3,000
3,000
Depreciation Expense
Accumulated Depreciation - Furniture
Insurance Expense
Unused Supplies
Interest Income
1,500
1,500
1,500
1,500
10,000
3,000
10,000
3,000
1,000
262,500
262,500
89,500 151,000 173,000 111,500
Net Income
61,500
61,500
151,000 151,000 173,000 173,000
Total
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