Prepare Income statement and Balance sheet    

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