At the end of the first three months of operation, Evergreen Repairs trial balance is as follows. Jonah Kita, Evergreens


At the end of the first three months of operation, Evergreen Repair€™s trial balance is as follows.

At the end of the first three months of operation,

Jonah Kita, Evergreen€™s owner, has hired an accountant to prepare financial statements to determine how well the company is doing after three months. Upon examining the accounting records, the accountant finds the following items of interest:
a. An inventory of office supplies reveals supplies on hand of $469.
b. The Prepaid Rent account includes the rent for the first three months plus a deposit for April€™s rent.
c. Depreciation on the equipment for the first three months is $560.
d. The balance of the Unearned Repair Revenue account represents a 12-month service contract paid in advance on February 1.
e. On March 31, accrued wages total $168.

All adjustments affect one balance sheet account and one income statement account. For each of these situations, show the accounts affected, the amount of the adjustment (using a + or €“ to indicate an increase or decrease), and the balance of the account after the adjustment in the followingformat:

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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Related Book For  answer-question

Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

Question Details
Chapter # 3
Section: Problems
Problem: 9
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Question Posted: March 26, 2014 07:59:11