Prepare the financial statements from the adjusted trial balance given below:

Marvin Karate Studio Adjusted Trial Balance December 31, 2024
	Debit		Credit
Cash	$ 25,600
Accounts receivable ($3,500 + $1,250)	4,750
Supplies ($1,500 − $550)	950
Prepaid insurance ($4,200 − $3,150)	1,050
Prepaid rent ($9,000 − $6,000)	3,000
Equipment	30,000
Accumulated depreciation—equipment			$ 1,875
Accounts payable ($3,500 + $375)			3,875
Salaries payable			750
Unearned revenue ($6,000 − $2,000)			4,000
Notes payable			18,000
Interest payable			720
C. Marvin, capital			43,900
C. Marvin, drawings	20,000
Service revenue ($80,050 + $2,000 + $1,250)			83,300
Salaries expense ($30,000 + $750)	30,750
Rent expense ($22,400 + $6,000)	28,400
Utilities expense ($5,250 + $375)	5,625
Insurance expense	3,150
Depreciation expense	1,875
Supplies expense	550
Interest expense	720
	$156,420		$156,420

Answer rating: 100% (QA)

To prepare the financial statements from the adjusted trial balance we need to create an income stat... View the full answer