Trial Balance and Financial Statements The following account balances, in alphabetical order, are from the general ledger of Morgan's Waterproofing Service at January 31. The firm began business on Ja 1. All accounts have normal balances. Accounts payable $3,500 Notes payable Accounts receivable 21,000 Rent expense Advertising expense 1,420 Salaries expense Cash 10,400 Service fees earned 29,740 Supplies Common stock Dividends 1,000 Supplies expense Interest expense 50 Utilities expense $4,000 1,700 8,000 25,760 8,860 10,250 320 Required a. Prepare a trial balance from the given data. b. Prepare an income statement for the month of January. c. Prepare a statement of stockholders' equity for the month of January. d. Prepare a balance sheet as of January 31. Note: Do not use negative signs with your answers, unless otherwise noted (such as Dividends). Trial Balance Income Statement Statement of Stockholders' Equity Balance Sheet MORGAN'S WATERPROOFING SERVICE Statement of Stockholders' Equity For the Month Ended January 31

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Trial Balance and Financial Statements The following account balances, in alphabetical order, are from the general ledger of Morgan's Waterproofing Service at January 31. The firm began business on January
1. All accounts have normal balances.
Accounts payable $3,500 Notes payable
Accounts receivable 21,000 Rent expense
Advertising expense
Cash
Common stock
Dividends
Interest expense
1,420 Salaries expense
10,400 Service fees earned
29,740 Supplies
1,000 Supplies expense
50 Utilities expense
Balance, January 1
Required
a. Prepare a trial balance from the given data.
b. Prepare an income statement for the month of January.
c. Prepare a statement of stockholders' equity for the month of January.
d. Prepare a balance sheet as of January 31.
Note: Do not use negative signs with your answers, unless otherwise noted (such as Dividends).
Trial Balance
Income Statement Statement of Stockholders' Equity Balance Sheet
MORGAN'S WATERPROOFING SERVICE
Statement of Stockholders' Equity
For the Month Ended January 31
Add: Stock Issued
Add: Net Income
Less: Dividends Paid(enter as negative)
Balance, January 31
$4,000
1,700
8,000
25,760
8,860
10,250
320
Common Stock Retained Earnings Total
$
$
0 $
0
0
0
0 $
0 $
0
0
0
0 $
0
0
0
0
0
Transcribed Image Text:Trial Balance and Financial Statements The following account balances, in alphabetical order, are from the general ledger of Morgan's Waterproofing Service at January 31. The firm began business on January 1. All accounts have normal balances. Accounts payable $3,500 Notes payable Accounts receivable 21,000 Rent expense Advertising expense Cash Common stock Dividends Interest expense 1,420 Salaries expense 10,400 Service fees earned 29,740 Supplies 1,000 Supplies expense 50 Utilities expense Balance, January 1 Required a. Prepare a trial balance from the given data. b. Prepare an income statement for the month of January. c. Prepare a statement of stockholders' equity for the month of January. d. Prepare a balance sheet as of January 31. Note: Do not use negative signs with your answers, unless otherwise noted (such as Dividends). Trial Balance Income Statement Statement of Stockholders' Equity Balance Sheet MORGAN'S WATERPROOFING SERVICE Statement of Stockholders' Equity For the Month Ended January 31 Add: Stock Issued Add: Net Income Less: Dividends Paid(enter as negative) Balance, January 31 $4,000 1,700 8,000 25,760 8,860 10,250 320 Common Stock Retained Earnings Total $ $ 0 $ 0 0 0 0 $ 0 $ 0 0 0 0 $ 0 0 0 0 0
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