Prepare Income statement and Balance sheet Mark Ladd opened Ladd Roofing Service on April 1. The unadjusted
Fantastic news! We've Found the answer you've been seeking!
Question:
Prepare Income statement and Balance sheet
Transcribed Image Text:
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 Accounts receivable 4,600 Unearned revenue Supplies 1,200 Common Stock Prepaid insurance Truck Accumulated depreciation - Truck Equipment Accumulated depreciation - Equipment Transaction 2.880 Retained earnings (beginning) 6,000 Roofing fee revenue Fuel expense Unadj. Bal. 1. Supplies adj. 2. Insurance adj. 3. Depreciation adj. Truck 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. TIP: Enter amounts that reduce the category as negative numbers. Balance Sheet 4. Depreciation adj. Equip. 5. Earned fees adj. End. Bal. 2,940 Advertising expense Wages expense b. Prepare the income statement for the month of April and the balance sheet as of April 30. Transaction Analysis Template Income Statement Balance Sheet Assets 7 0x = 0 x = 0x = 0x = 0x = 0= 0 Liabilities 0x + 0 $3,140 1,800 11,500 0 + 9.500 75 100 2,500 0 + 0 + 0x + 0 Stockholders' Equity 0 x 0 x 0x 0x 0 x 0x 0 Revenue 0x 0- 0 0 0 x < .. 0 x 0 Income Statement Expenses 0x 0x = 11 0x = 0 x = 0x = 0 S " 0 Net Income 0x 0x 0x 0x 0x 0x 0 19 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 Accounts receivable 4,600 Unearned revenue Supplies 1,200 Common Stock Prepaid insurance Truck Accumulated depreciation - Truck Equipment Accumulated depreciation - Equipment Transaction 2.880 Retained earnings (beginning) 6,000 Roofing fee revenue Fuel expense Unadj. Bal. 1. Supplies adj. 2. Insurance adj. 3. Depreciation adj. Truck 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. TIP: Enter amounts that reduce the category as negative numbers. Balance Sheet 4. Depreciation adj. Equip. 5. Earned fees adj. End. Bal. 2,940 Advertising expense Wages expense b. Prepare the income statement for the month of April and the balance sheet as of April 30. Transaction Analysis Template Income Statement Balance Sheet Assets 7 0x = 0 x = 0x = 0x = 0x = 0= 0 Liabilities 0x + 0 $3,140 1,800 11,500 0 + 9.500 75 100 2,500 0 + 0 + 0x + 0 Stockholders' Equity 0 x 0 x 0x 0x 0 x 0x 0 Revenue 0x 0- 0 0 0 x < .. 0 x 0 Income Statement Expenses 0x 0x = 11 0x = 0 x = 0x = 0 S " 0 Net Income 0x 0x 0x 0x 0x 0x 0 19
Expert Answer:
Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
Posted Date:
Students also viewed these accounting questions
-
On December 31, 2014, the following unadjusted trial balance was prepared, and the following data were accumulated to assist the accountant in preparing the adjusting entries and adjusted trial...
-
Q1. The following transactions occurred during Year 1, the first year of business, for Nancy Nanny Child Care. Record each transaction in proper journal entry format below using debits and credits....
-
To prepare the statement of cash flows, accountants for Percy Electric Company have summarized 2016 activity in two accounts: Percy Electric's 2016 income statement and balance sheet data follow:...
-
Over the past 10 years, a bank has experienced the following loan losses on its C&I loans, consumer loans, and total loan portfolio. Using regression analysis on these historical loan losses, the...
-
How do we decide when to harvest an asset?
-
Determine the force in each member of the truss and state whether it is in tension or compression. 3 m A C 88 40 kN 4m- B Prob. F3-1
-
Explain how consent differs among competent patients, minors, guardians, and incompetent patients.
-
If a capital project is incomplete at the end of a fiscal year, why is it considered desirable to close Encumbrances and all operating statement accounts at year-end? Why is it desirable to...
-
Clair is a soccer player that just signed a 3-year contract with a new team. The contract will pay her as follows: $58,000 today $67,000 at the end of year 1 $73,000 at the end of year 2 $89,000 at...
-
Katie Scarlett is analyzing the 15-unit apartment building for a client for possible purchase. She expanded her analysis from just the DCF (Income) to include the Direct Cap (Income), the Cost and...
-
Linux is: primarily concerned with the tasks of end users. designed for specific machines and specific microprocessors poorly suited to power fast computers. especially useful for processing numeric...
-
Consider the Hanemann and Cameron specifications shown in examples 19.3 and 19.4. (a) For the full dataset, summarize the proportion of people who vote yes in the referendum for each of the four bid...
-
Assume there is a single firm producing the output with a general cost function C(x,e,). (a) Set up some reasonable assumptions on C(x,e,). (b) Determine the socially optimal allocation, given a...
-
Consider evaluating the welfare effect of a change in an environmental quantity q. Recall that CV and EV have different implied property right implications and, depending on the direction of change,...
-
Assume the negligence rule holds. Show that the second-best optimal due care level a nr (y) is given by: (a) a nr (y)=a * for yy (b) a nr (y)=(y) for y [1-p(as (y))]U (y-a" (y)) = U (y (y))
-
Congress plans to make large polluters, such as oil refiners and automobile manufacturers, and makers of cement, aluminum, glass and paper, start tracking their emissions next year. The EPAs climate...
-
Prepare a revised budgetary control report. Cucumber Ltd is a company, based in Manchester UK and established in 2005, that produces smart phones. It is a relatively small company, with a highly...
-
Should we separate the debt and equity features of convertible debt? Team 1: Pro separation: Present arguments in favor of separating the debt and equity features of convertible debt. Team 2: Against...
-
During 2017, Amazon.com, Inc., made two significant acquisitions intending to expand the company's retail presence. On May 12, 2017, Amazon acquired Souq Group Ltd. ("Souq"), an e-commerce company,...
-
The statement of cash flows for Daimler AG follows: REQUIRED: a. Daimler begins its cash flow statement with before-tax income of 14,301 million, then adds 5,676 million for depreciation and...
-
Refer to the data for Guay Company in Exercise 12-35. Assume that Guay Company reports under International Financial Reporting Standards (IFRS). Under IFRS, Guay can designate an equity investment...
-
At the beginning of a duct the nitrogen pressure is \(1.5 \mathrm{bar}\), the stagnation temperature is \(280 \mathrm{~K}\), and the Mach number is 0.80 . After some heat transfer the static pressure...
-
Air enters a constant-area duct with \(M_{1}=2.95\) and \(T_{1}=500^{\circ} \mathrm{R}\). Heat transfer decreases the outlet Mach number to \(M_{2}=1.60\). (a) Compute the exit static and stagnation...
-
A \(50 \times 50 \mathrm{~cm}\) duct is \(10 \mathrm{~m}\) in length. Nitrogen enters at \(M_{1}=3.0\) and leaves at \(M_{2}=1.7\), with \(T_{2}=280 \mathrm{~K}\) and \(p_{2}=7 \times 10^{4}...
Study smarter with the SolutionInn App