Johnstone & Gonari Ltd. (J&G) is a new business in Saskatoon that does tax consulting for clients. J&G opened on February 1, 2021 and they have asked you for help with their financial statements. J&G has correctly prepared the following trial balance at February 28, 2021. Prepare the classified balance sheet at February 28, 2021 and the income statement for the month ended February 28, 2021 using the trial balance below: Account Name Debits Credits Cash $80,000 Accounts Receivable 5,000 Supplies 2,000 Equipment 10,000 Accounts Payable $8,000 Note Payable (payment due in 2024) 20,000 Contributed Capital 35,000 Retained Earnings (beginning balance) 0 Consulting Revenue 54,000 Other Revenue 4,000 Advertising Expense 2,000 Rent Expense 4,000 Wage Expense 16,000 Utilities Expense 2,000 Totals $121,000 $121,000
Johnstone & Gonari Ltd. (J&G) is a new business in Saskatoon that does tax consulting for clients. J&G opened on February 1, 2021 and they have asked you for help with their financial statements. J&G has correctly prepared the following
|
Account Name |
Debits |
Credits |
|
Cash |
$80,000 |
|
|
|
5,000 |
|
|
Supplies |
2,000 |
|
|
Equipment |
10,000 |
|
|
Accounts Payable |
|
$8,000 |
|
Note Payable (payment due in 2024) |
|
20,000 |
|
Contributed Capital |
|
35,000 |
|
|
|
0 |
|
Consulting Revenue |
|
54,000 |
|
Other Revenue |
|
4,000 |
|
Advertising Expense |
2,000 |
|
|
Rent Expense |
4,000 |
|
|
Wage Expense |
16,000 |
|
|
Utilities Expense |
2,000 |
|
|
Totals |
$121,000 |
$121,000 |
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