Question $2$

Tropic Treasures Inc reported the following information for their year$-$ended June $30,2023.$ Assume normal balances.

Accounts Payable $1,800$

Accounts Receivable $3,500$

Cash $58,000$

Contributed Capital $10,000$

Service Revenue $108,000$

Depreciation Expense $2,500$

Dividends $2,000$

Vehicle, net $35,000$

Note Payable $($due June $2028)15,000$

Office Expenses $7,500$

Prepaid Insurance $800$

Rent Expense $6,000$

Retained Earnings $15,000$

Salaries Expense $38,000$

Deferred Revenue $8,500$

Utilities Expense $5,000$

a$)$ Prepare the Income Statement for Tropic Treasures.

b$)$ What is the closing balance of Retained Earnings for Tropic Treasures?

c$)$ Prepare the Classified Balance Sheet for Tropic Treasures.

d$)$ Prepare the closing journal entries for Tropic Treasures and post these entries to the t$-$accounts.

a$)$ Prepare the Income Statement for Tropic Treasures. Remember to include the headings on your financial statements.

b$)$ What is the closing balance of Retained Earnings for Tropic Treasures?

c$)$ Prepare the Classified Balance Sheet for Tropic Treasures.

d$)$ Prepare the closing journal entries for Tropic Treasures and post these entries to the t$-$accounts.

Answer rating: 100% (QA)

ANSWER a Income Statement for Tropic Treasures Inc Revenue Service Revenue 108000 Expenses Depreciat... View the full answer