complete section A based on adjusted trial balance sheet Section A - Create the financial statements for Company JK for the year-ended 2020. (Note: create anincome statement, statement of retained earnings, and a classified balance sheet)COMPANY JKINCOME STATEMENTFOR THE PERIOD ENDED DECEMBER 31, 2020Revenues:Expenses:COMPANY JKSTATEMENT OF EQUITYFOR THE PERIOD ENDED DECEMBER 31, 2020Common stockRetained earningsBeginning balance, 1/1/2020Plus:Minus:Ending balance, 12/31/2020 PART 4 - Use the following adjusted trial balance to complete section A and B below.COMPANY JKADJUSTED TRIAL BALANCE12/31/2020Account title:DebitCreditCash| 30,000Accounts receivable| 20,000Office supplies9,000BuildingsAccumulated depreciation -Buildings85,00020,000Accounts payable10,000Deferred revenue5,500Interest payable (due in 1 month)100Notes payable (due in 2 years)10,000Common stock15,000Retained earnings40,000Dividends2,000Service revenue83,600Wages expense27,000Interest expense1,200Depreciation expense - Buildings10,000ΤΟΤAL184,200 184,200

Answered: Section A- Create the financial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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complete section A based on adjusted trial balance sheet

Section A - Create the financial statements for Company JK for the year-ended 2020. (Note: create an
income statement, statement of retained earnings, and a classified balance sheet)
COMPANY JK
INCOME STATEMENT
FOR THE PERIOD ENDED DECEMBER 31, 2020
Revenues:
Expenses:
COMPANY JK
STATEMENT OF EQUITY
FOR THE PERIOD ENDED DECEMBER 31, 2020
Common stock
Retained earnings
Beginning balance, 1/1/2020
Plus:
Minus:
Ending balance, 12/31/2020

PART 4 - Use the following adjusted trial balance to complete section A and B below.
COMPANY JK
ADJUSTED TRIAL BALANCE
12/31/2020
Account title:
Debit
Credit
Cash
| 30,000
Accounts receivable
| 20,000
Office supplies
9,000
Buildings
Accumulated depreciation -
Buildings
85,000
20,000
Accounts payable
10,000
Deferred revenue
5,500
Interest payable (due in 1 month)
100
Notes payable (due in 2 years)
10,000
Common stock
15,000
Retained earnings
40,000
Dividends
2,000
Service revenue
83,600
Wages expense
27,000
Interest expense
1,200
Depreciation expense - Buildings
10,000
ΤΟΤAL
184,200 184,200

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Step 1

Income statement refers to the a statement that shows the revenue and expenses of a company. The statement shows whether a company is earning profit or not. It is a part of final accounts. After preparing a trail balance, income statement is prepared followed by balance sheet.