In December 2014, Lynn Newton opened an organic dry-cleaning shop. The financial statement effects template below shows transactions for the month (a through i) and accounting adjustments (i through iv).

Required---use good form!!!

a. Prepare a trial balance for December 31, 2014 using the accounts named in the transactions below (for instance, in transaction a below, the accounts affected are Cash, Equipment, and Common Stock).

b. Prepare an income statement for Lynn Newton?s first month of operations.

c. Prepare a balance sheet for December 31, 2014.

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Transaction b) c) d) e) f) g) h) i) i. ii. iii. iv. Cash Asset +12,000 -2,760 +1,600 +530 -8,000 -3,000 +10,600 -4,200 Noncash Assets +72,000 (Equipment) +2,400 (Supplies) +4,600 (Equipment) +8,000 (Equipment) -1,600 (Supplies) -2,000 (Equipment) Balance Sheet = Liabilities + +530 = (Unearned Revenue) = = = +4,600 AP) = -4,200 (AP) +100 (Wages Payable) +2,400 (Rent Payable) Contrib. Capital +84,000 (Common Stock) + Earned Capital -360 Retained Earnings) +1,600 +1,600 (Retained (Sales) Earnings), -3,000 (Retaineck Earnings) +10,600 (Retained Earnings) -1,600 (Retained Earnings) Revenues -2,000 (Retained Earnings) -100 (Retained, Earnings) -2,400 (Retained Earnings) +10,600 (Sales) Income Statement - Expenses +360 (Phone Expense) +3,000 (Wages Exp.) = +1,600 (Supplies = Exp.) +100 (Wages Exp.) = +2,000 (Dnepr's = Exp.) +2,400 Rent Exp. Net Income -360 +1,600 -3,000 +10,600 1,600 -2,000 -100 -2,400 Transaction b) c) d) e) f) g) h) i) i. ii. iii. iv. Cash Asset +12,000 -2,760 +1,600 +530 -8,000 -3,000 +10,600 -4,200 Noncash Assets +72,000 (Equipment) +2,400 (Supplies) +4,600 (Equipment) +8,000 (Equipment) -1,600 (Supplies) -2,000 (Equipment) Balance Sheet = Liabilities + +530 = (Unearned Revenue) = = = +4,600 AP) = -4,200 (AP) +100 (Wages Payable) +2,400 (Rent Payable) Contrib. Capital +84,000 (Common Stock) + Earned Capital -360 Retained Earnings) +1,600 +1,600 (Retained (Sales) Earnings), -3,000 (Retaineck Earnings) +10,600 (Retained Earnings) -1,600 (Retained Earnings) Revenues -2,000 (Retained Earnings) -100 (Retained, Earnings) -2,400 (Retained Earnings) +10,600 (Sales) Income Statement - Expenses +360 (Phone Expense) +3,000 (Wages Exp.) = +1,600 (Supplies = Exp.) +100 (Wages Exp.) = +2,000 (Dnepr's = Exp.) +2,400 Rent Exp. Net Income -360 +1,600 -3,000 +10,600 1,600 -2,000 -100 -2,400

Answer rating: 100% (QA)

a Trial Balance Dr Cr Cash 6770 Equipment 82600 Supplies 800 Account... View the full answer