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Using the transactions attached and the Unadjusted trial balance please create a Statement of Retained Earnings

Using the transactions attached and the Unadjusted trial balance please create a Statement of Retained Earnings

FINANCIAL ACCOUNTING
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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Using the transactions attached and the Unadjusted trial balance please create a Statement of Retained Earnings.

Transaction Debit Credit 1 Parking fees 250.00 Bank 250.00 To record parking fees paid monthly 2 Insurance $ 4,200.00 Prepaid Insurance $ 4,200.00 To record insurance for year 2020 Prepaid Insurance $ 2,800.00 Bank $ 2,800.00 To record insurance paid for next six months Insurance $ 1400.00 $ 1.400.00 Prepaid Insurance To record insurance expense for January 2021 to March 2021 3 Depreciation Machinery To record depreciation on machinery 885.00 885.00 Depreciation $ 3,600.00 Bakery Fixtures To record depreciation on bakery fixtures for previous yearand current year $ 3,600.00 $ 5,900.00 4 Machinery Repairs and Maintenance To record machinery charged to Repairs and Maintenance $ 5,900.00 $ 9,000.00 Bakery Fixtures Repairs and Maintenance To record machinery charged to Repairs and Maintenance for fridge $ 9,000.00 5 Inventory Cost of Goods Sold #### # To record inventory at lower cost 6 Employee Expense $ 54,000.00 $ 54,000.00 Wages Expense To record outstanding salary expense 7 Bank $ 1,000.00 Revenue $ 1,000.00 To record amount reeived in November 2020 for May 2021 8 Bad Debt Expense $ 6,165.00 AFDA $ 6,165.00 To record afda for non-corporate receivables Bad Debt Expense $ 3,836.00 AFDA $ 3,836.00 To record afda for corporate receivables over 90 days Bad Debt Expense $ 1439.00 AFDA $ 1,439.00 To record afda for corporate receivables over 120 days
Transcribed Image Text:Transaction Debit Credit 1 Parking fees 250.00 Bank 250.00 To record parking fees paid monthly 2 Insurance $ 4,200.00 Prepaid Insurance $ 4,200.00 To record insurance for year 2020 Prepaid Insurance $ 2,800.00 Bank $ 2,800.00 To record insurance paid for next six months Insurance $ 1400.00 $ 1.400.00 Prepaid Insurance To record insurance expense for January 2021 to March 2021 3 Depreciation Machinery To record depreciation on machinery 885.00 885.00 Depreciation $ 3,600.00 Bakery Fixtures To record depreciation on bakery fixtures for previous yearand current year $ 3,600.00 $ 5,900.00 4 Machinery Repairs and Maintenance To record machinery charged to Repairs and Maintenance $ 5,900.00 $ 9,000.00 Bakery Fixtures Repairs and Maintenance To record machinery charged to Repairs and Maintenance for fridge $ 9,000.00 5 Inventory Cost of Goods Sold #### # To record inventory at lower cost 6 Employee Expense $ 54,000.00 $ 54,000.00 Wages Expense To record outstanding salary expense 7 Bank $ 1,000.00 Revenue $ 1,000.00 To record amount reeived in November 2020 for May 2021 8 Bad Debt Expense $ 6,165.00 AFDA $ 6,165.00 To record afda for non-corporate receivables Bad Debt Expense $ 3,836.00 AFDA $ 3,836.00 To record afda for corporate receivables over 90 days Bad Debt Expense $ 1439.00 AFDA $ 1,439.00 To record afda for corporate receivables over 120 days
Unadjusted Trial Balance, December 31, 2020 Account name Debit CAD$ Credit CADS Cash 423,177 Accounts receivable 137,000 Prepaid insurance Inventory Machinery Accumulated depreciation – Machinery 5,400 149,000 53,000 25,864 Furniture and Fixtures 123,000 Accumulated depreciation - Furniture and Fixtures Computer equipment Accounts payable Dividends payable Contributed capital Retained earnings 30,750 4,650 45,000 10,000 75,000 140,386 Revenue 2,630,000 Purchases 606,800 Salaries and wages expense Advertising expense 1,281,913 16,000 Repairs and maintenance Rent expense 18,370 96,000 Laundry expense Utilities expense Administrative expense 18,250 14,440 10,000 $2,957,000 $2,957,000
Transcribed Image Text:Unadjusted Trial Balance, December 31, 2020 Account name Debit CAD$ Credit CADS Cash 423,177 Accounts receivable 137,000 Prepaid insurance Inventory Machinery Accumulated depreciation – Machinery 5,400 149,000 53,000 25,864 Furniture and Fixtures 123,000 Accumulated depreciation - Furniture and Fixtures Computer equipment Accounts payable Dividends payable Contributed capital Retained earnings 30,750 4,650 45,000 10,000 75,000 140,386 Revenue 2,630,000 Purchases 606,800 Salaries and wages expense Advertising expense 1,281,913 16,000 Repairs and maintenance Rent expense 18,370 96,000 Laundry expense Utilities expense Administrative expense 18,250 14,440 10,000 $2,957,000 $2,957,000
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