The trial balance of Dunn Service Center, Inc., on March 1, 2018, lists the entity’s assets, liabilities, and stockholders’ equity on that date. During March, the business completed the following transactions: a. Borrowed $45,000 from the bank, with Dunn signing a note payable in the name of the business. b. Paid cash of $40,000 to a real estate company to acquire land. c. Performed a service for a customer and received cash of $5,000. d. Purchased supplies on credit, $300. e. Performed a service for a customer and earned $2,600 of revenue on account. f. Paid $1,200 on account. g. Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400. h. Received $3,100 on account. i. Received a $200 utility bill that will be paid next week. j. Declared and paid a dividend of $1,800 Requirements ■ Assets—Cash, $26,000; Accounts Receivable, $4,500; Supplies, no balance; Land, no balance ■ Liabilities—Accounts Payable, $2,000; Note Payable, no balance ■ Stockholders’ Equity—Common Stock, $10,000; Retained Earnings, $18,500; Dividends, no balance ■ Revenues—Service Revenue, no balance ■ Expenses—(none have balances) Salary Expense, Rent Expense, Interest Expense, Utilities Expense 1. Prepare the trial balance of Dunn Service Center, Inc., at March 31, 2018. 2. To determine the net income or net loss of the company during the month of March, prepare a single-step income statement for the month ended March 31, 2018. List the expenses in order from the largest to the smallest.
The
and
During March, the business completed the following transactions:
a. Borrowed $45,000 from the bank, with Dunn signing a note payable in the name of the business.
b. Paid cash of $40,000 to a real estate company to acquire land.
c. Performed a service for a customer and received cash of $5,000.
d. Purchased supplies on credit, $300.
e. Performed a service for a customer and earned $2,600 of revenue on account.
f. Paid $1,200 on account.
g. Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400.
h. Received $3,100 on account.
i. Received a $200 utility bill that will be paid next week.
j. Declared and paid a dividend of $1,800
Requirements
■ Assets—Cash, $26,000;
■ Liabilities—Accounts Payable, $2,000; Note Payable, no balance
■ Stockholders’ Equity—Common Stock, $10,000;
balance
■ Revenues—Service Revenue, no balance
■ Expenses—(none have balances) Salary Expense, Rent Expense, Interest Expense, Utilities Expense
1. Prepare the trial balance of Dunn Service Center, Inc., at March 31, 2018.
2. To determine the net income or net loss of the company during the month of March, prepare a single-step income statement for the month ended March 31, 2018. List the expenses in order from the
largest to the smallest.
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