Question: Selected accounts of Albright Consulting Inc a financial services business

Selected accounts of Albright Consulting, Inc., a financial services business, have the following balances at January 31, 2013, the end of its first year of operations. During the year, Lilly Albright, the only shareholder, bought $49,700 of shares in the business.
Office Furniture $ 20,000
Utilities Expense 13,500
Accounts Payable 9,500
Notes Payable 21,500
Service Revenue 155,000
Accounts Receivable 10,500
Supplies Expense 3,700
Rent Expense $36,000
Cash 15,600
Office Supplies 1,400
Salary Expense 43,000
Salaries Payable 1,000
Property Tax Expense 3,000
Equipment 40,000
1. Identify each as an asset, liability, revenue, or expense.
2. Prepare the income statement of Albright Consulting, Inc. for the year ended January 31, 2013. What is the result of operations for 2013?
3. Assuming the balance in Retained Earnings on January 31, 2013, was $5,800, what was the amount of the dividends during the year? Answer by preparing a statement of changes in retained earnings to solve for the dividends. Recall that the business has just completed its first year and has no beginning balance for retained earnings.

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  • CreatedJuly 08, 2015
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