Mark Ladd opened Ladd Roofing Service on April 1. The unadjusted account balances as of April...
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Mark Ladd opened Ladd Roofing Service on April 1. The unadjusted account balances as of April 30 are as follows: Cash $5,645 Accounts payable $3,140 Accounts receivable 4,600 Unearned revenue 1,800 Supplies 11,500 Prepaid insurance Truck Accumulated depreciation - Truck Equipment Accumulated depreciation - Equipment 1,200 Common Stock 2,880 Retained earnings (beginning) 6,000 Roofing fee revenue Fuel expense 2,940 Advertising expense Wages expense 9,500 75 100 2,500 a. Using the Transaction Analysis Template, determine the financial statement effect of each of the necessary adjustments as of April 30. 1. Supplies on hand on April 30 amounted to $400. 2. A two-year insurance policy was purchased on April 1. 3. The used truck was purchased on April 1 and has an estimated useful life of 4 years. 4. The items in the Equipment account were purchased on April 1 and have an estimated useful life of 7 years. 5. 25% of the roofing fees received in advance (in Unearned revenue) were earned by April 30. b. Prepare the income statement for the month of April and the balance sheet as of April 30. Transaction Analysis Template Income Statement TIP: Enter amounts that reduce the category as negative numbers. Balance Sheet Transaction Unadj. Bal. 1. Supplies adj. 2. Insurance adj. 3. Depreciation adj. Truck 4. Depreciation adj. Equip. 5. Earned fees adj. End. Bal. Assets = 0 = 0 = 0 = 0 = 0 = 0 = 0 = Balance Sheet Liabilities + 0 + 0 + 0 + 0 + 0 + 0 + 0 + Stockholders' Equity 0 0 0 0 0 0 0 Revenue 0 0 O 0 0 0 0 Income Statement Expenses = 0 = 0 = 0 = 0 = 0 = 0 = 0 Net Income 0 0 0 0 0 0 0 b. Prepare the income statement for the month of April and the balance sheet as of April 30. Transaction Analysis Template NOTE: Expenses can be listed in any order. Ladd Roofing Service Income Statement For the month of April Revenue Expenses Income Statement > > > $ Balance Sheet b. Prepare the income statement for the month of April and the balance sheet as of April 30. Transaction Analysis Template Income Statement TIP: Refer to Exhibit 3-3 for help with the order of presentation. Enter amounts that reduce the totals as negative numbers. Ladd Roofing Service Balance Sheet April 30 Assets Supplies Truck Total assets ◄► 4 ► ♦ ¶¶¶ (▶► $ tA $ tA Balance Sheet Liabilities 0 0 0 0 0 0 Stockholders' Equity 0 ¶ tA $ (35) (35) Total liabilities and stockholders' equity $ O O 0 0 0 Mark Ladd opened Ladd Roofing Service on April 1. The unadjusted account balances as of April 30 are as follows: Cash $5,645 Accounts payable $3,140 Accounts receivable 4,600 Unearned revenue 1,800 Supplies 11,500 Prepaid insurance Truck Accumulated depreciation - Truck Equipment Accumulated depreciation - Equipment 1,200 Common Stock 2,880 Retained earnings (beginning) 6,000 Roofing fee revenue Fuel expense 2,940 Advertising expense Wages expense 9,500 75 100 2,500 a. Using the Transaction Analysis Template, determine the financial statement effect of each of the necessary adjustments as of April 30. 1. Supplies on hand on April 30 amounted to $400. 2. A two-year insurance policy was purchased on April 1. 3. The used truck was purchased on April 1 and has an estimated useful life of 4 years. 4. The items in the Equipment account were purchased on April 1 and have an estimated useful life of 7 years. 5. 25% of the roofing fees received in advance (in Unearned revenue) were earned by April 30. b. Prepare the income statement for the month of April and the balance sheet as of April 30. Transaction Analysis Template Income Statement TIP: Enter amounts that reduce the category as negative numbers. Balance Sheet Transaction Unadj. Bal. 1. Supplies adj. 2. Insurance adj. 3. Depreciation adj. Truck 4. Depreciation adj. Equip. 5. Earned fees adj. End. Bal. Assets = 0 = 0 = 0 = 0 = 0 = 0 = 0 = Balance Sheet Liabilities + 0 + 0 + 0 + 0 + 0 + 0 + 0 + Stockholders' Equity 0 0 0 0 0 0 0 Revenue 0 0 O 0 0 0 0 Income Statement Expenses = 0 = 0 = 0 = 0 = 0 = 0 = 0 Net Income 0 0 0 0 0 0 0 b. Prepare the income statement for the month of April and the balance sheet as of April 30. Transaction Analysis Template NOTE: Expenses can be listed in any order. Ladd Roofing Service Income Statement For the month of April Revenue Expenses Income Statement > > > $ Balance Sheet b. Prepare the income statement for the month of April and the balance sheet as of April 30. Transaction Analysis Template Income Statement TIP: Refer to Exhibit 3-3 for help with the order of presentation. Enter amounts that reduce the totals as negative numbers. Ladd Roofing Service Balance Sheet April 30 Assets Supplies Truck Total assets ◄► 4 ► ♦ ¶¶¶ (▶► $ tA $ tA Balance Sheet Liabilities 0 0 0 0 0 0 Stockholders' Equity 0 ¶ tA $ (35) (35) Total liabilities and stockholders' equity $ O O 0 0 0
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Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
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