Orange Designs provides consulting services related to home decoration. Orange Designs provides customers with recommendations for a full range of home décor, including window treatments, carpet and wood flooring, paint colors, furniture, and much more. Below is the year-end adjusted trial balance of Orange Designs.ORANGE DESIGNS Adjusted Trial Balance December 31, 2021 Accounts Debits Credits Cash $ 6,000 Accounts Receivable 5,000 Supplies 3,000 Prepaid Rent 7,000 Buildings 120,000 Accumulated Depreciation $ 22,000 Accounts Payable 4,000 Salaries Payable 5,000 Utilities Payable 1,100 Notes Payable (due in four years) 30,000 Common Stock 60,000 Retained Earnings 16,000 Service Revenues 111,900 Salaries Expense 43,000 Rent Expense 19,000 Depreciation Expense 8,000 Supplies Expense 9,000 Advertising Expense 14,000 Utilities Expense 13,000 Interest Expense 3,000 Totals $250,000 $250,000Required: Prepare an income statement, statement of stockholders’ equity, and classified balance sheet. In preparing the statement of stockholders’ equity, note that during the year the company issued additional common stock of $11,000. This amount is included in the amount for Common Stock in the adjusted trial balance.

Orange Designs provides consulting services related to home decoration. Orange Designs provides customers with recommendations for a full range of home décor, including window treatments, carpet and wood flooring, paint colors, furniture, and much more. Below is the year-end adjusted trial balance of Orange Designs.ORANGE DESIGNS Adjusted Trial Balance December 31, 2021 Accounts Debits Credits Cash $ 6,000 Accounts Receivable 5,000 Supplies 3,000 Prepaid Rent 7,000 Buildings 120,000 Accumulated Depreciation $ 22,000 Accounts Payable 4,000 Salaries Payable 5,000 Utilities Payable 1,100 Notes Payable (due in four years) 30,000 Common Stock 60,000 Retained Earnings 16,000 Service Revenues 111,900 Salaries Expense 43,000 Rent Expense 19,000 Depreciation Expense 8,000 Supplies Expense 9,000 Advertising Expense 14,000 Utilities Expense 13,000 Interest Expense 3,000 Totals $250,000 $250,000Required: Prepare an income statement, statement of stockholders’ equity, and classified balance sheet. In preparing the statement of stockholders’ equity, note that during the year the company issued additional common stock of $11,000. This amount is included in the amount for Common Stock in the adjusted trial balance.

Name: Orange Designs provides consulting services related to home decoration
Uploaded: 2024-03-04T10:43:15.000Z
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Description: Orange Designs provides consulting services related to home decoration. Orange Designs provides customers with recommendations for a full range of home décor, including window treatments, carpet and wood flooring, paint colors, furniture, and much mo

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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Orange Designs provides consulting services related to home decoration. Orange Designs provides customers with recommendations for a full range of home décor, including window treatments, carpet and wood flooring, paint colors, furniture, and much more. Below is the year-end adjusted trial balance of Orange Designs.

ORANGE DESIGNS
Adjusted Trial Balance December 31, 2021
Accounts Debits Credits
Cash $ 6,000
Accounts Receivable 5,000
Supplies 3,000
Prepaid Rent 7,000
Buildings 120,000
Accumulated Depreciation $ 22,000
Accounts Payable 4,000
Salaries Payable 5,000
Utilities Payable 1,100
Notes Payable (due in four years) 30,000
Common Stock 60,000
Retained Earnings 16,000
Service Revenues 111,900
Salaries Expense 43,000
Rent Expense 19,000
Depreciation Expense 8,000
Supplies Expense 9,000
Advertising Expense 14,000
Utilities Expense 13,000
Interest Expense 3,000
Totals $250,000 $250,000

Required:
Prepare an income statement, statement of stockholders’ equity, and classified balance sheet. In preparing the statement of stockholders’ equity, note that during the year the company issued additional common stock of $11,000. This amount is included in the amount for Common Stock in the adjusted trial balance.

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