Prepare a statement of income for April 2016 On April 1, 2016, Mar Cruz, a lawyer, opened his own legal practice. The business adjusts and closes itsaccounts at the end of each month. The following trial balance was prepared after one month ofoperations.Unadjusted Trial BalanceDobitAccount Title and ExplanationCroditCash10,060Accounts ReceivablePrepaid ExpensesSuppliesOffice EquipmentAccum. Deprn-Off EqptNotes PayableInterest PayableUnearned Service RevenueCruz, Capital7,8001,46026,40016,00015,02020,000Cruz, Withdrawal3000Service Revenue1,580Supplies ExpenseSalaries Expense2,6801,20052,60052,600More information:No interest has yet been paid on the note payable. Accrued interest at April 30 amounts to PHP200.Salaries earned by the office staff but not yet recorded or paid anmounted to PHP970 by April 30.Many clients are asked to make advance payment for legal services to be rendered in future months.These advances are credited to the Unearned Service Revenue account once received. During April,PHP5.020 of these advances were earned by the business.Office supplies on hand by April 30 amounted to PHP400.The office equipment was purchased on April 1 and is being depreciated over an estimated useful lifeof 10 years with no residual value.

Statement of income is one of the financial statement which shows all incomes and all expenses of…

Answered: Prepare a statement of income for April…

Business

Accounting

Prepare a statement of income for April 2016

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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