Answered

The adjusted trial balance of Ryan Financial Planners appears below.

RYAN FINANCIAL PLANNERS
Adjusted Trial Balance
December 31, 2014
Debit Credit
Cash $2,660
Accounts Receivable 2,140
Supplies 1,850
Equipment 15,900
Accumulated Depreciation-Equipment $ 3,975
Accounts Payable 3,310
Unearned Service Revenue 3,205
Common Stock 10,000
Retained Earnings 4,510
Dividends 1,000
Service Revenue 4,300
Supplies Expense 410
Depreciation Expense 2,420
Rent Expense 2,920
$29,300 $29,300

Using the information from the adjusted trial balance, you are to prepare for the month ending December 31:
1. An income statement.
2. A balance sheet.
3. A retained earnings statement.

Answer :

hyderali230

Answer:

1.

Income Statement

                                                     $

Service Revenue                     4,300

Less :Supplies Expense           410  

Gross Income                           3,890

Less :Depreciation Expense   2,420

Less :Rent Expense                (2,920)

Net Loss                                   1,450  

2.

Balance Sheet

Assets                                                     $

Non-Current Asset

Equipment (15,900-3,975)                 11,925    

Current Asset                $

Cash                            2,660

Accounts Receivable 2,140

Supplies                      1,850

                                                            6,650

Total Asset                                          18,575

Common Stock                                   10,000

Retained Earnings                               2,060

Liabilities

Current Liabilities                      $

Unearned Service Revenue  3,205

Accounts Payable                   3,310

                                                             6,515

Total Equity and Liability                     18,575

3.

Retained Earning Statement                  $

Retained Earning (at beginning)          4,510

Dividend Paid                                       (1,000)

Net Loss for the year                           (1,450)

Retained Earning (at Ending)               2,060

Explanation:

1.

Income statement shows the profit or loss for the period by deducting all the expenses from the revenue. The net value from here transferred to retained earning in the balance sheet.

2.

Balance sheet shows the financial position of the company. It contains assets, equity and liabilities balance.

3.

Statement of retained earning shows the balance of retained earnings and adjust all the payments made to shareholders in the form of dividend and net profit or loss for the period.

Other Questions