The Red Oak Corporation had the following opening trial balance at the beginning of its fiscal...
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The Red Oak Corporation had the following opening trial balance at the beginning of its fiscal year, January 1, 2020. The company adjusts its accounts monthly. Debits Credits Cash $6.900 Accounts receivable 9,050 Supplies 3,700 Equipment Accumulated depreciation Unearned revenue Common shares Retained earnings Totals 25.000 $10.000 5,650 10.000 19,000 $44,650 $44,650 During the month of January, the following selected transactions took place: • January 1: Borrowed $12.000 from the bank for one year at an interest rate of 12%. Interest is due on the first day of each following month, beginning February 1. • January 2: Paid $4,200 for two months' rent in advance for January and February. • January 7: Purchased $1,425 supplies on account. Supplies on hand at January 31 were $80, • January 13: Performed services on account, $16,920. • January 14: Collected half of the outstanding accounts receivable. January 15: Paid salaries, $6,000. January 28: Performed $4,200 of services for a customer on account. • January 31: The company owed $3,000 of salaries to its employees for the month just ended. • January 31: The company earned $3.100 of revenue that had been received in advance. • January 31: The company performed $1,100 of services for a client that it had not billed or recorded. Required 1. Prepare an income statement for the month ending January 31., 2020. Keep all decimals when performing your calculations. Round final answers to the nearest whole number. Hand write your answer in your rough work. This will be submitted at the end of the test. 2. In the box below. Type in the net income/loss you calculated in your income statement. Round your answer to the nearest whole number. The Red Oak Corporation had the following opening trial balance at the beginning of its fiscal year, January 1, 2020. The company adjusts its accounts monthly. Debits Credits Cash $6.900 Accounts receivable 9,050 Supplies 3,700 Equipment Accumulated depreciation Unearned revenue Common shares Retained earnings Totals 25.000 $10.000 5,650 10.000 19,000 $44,650 $44,650 During the month of January, the following selected transactions took place: • January 1: Borrowed $12.000 from the bank for one year at an interest rate of 12%. Interest is due on the first day of each following month, beginning February 1. • January 2: Paid $4,200 for two months' rent in advance for January and February. • January 7: Purchased $1,425 supplies on account. Supplies on hand at January 31 were $80, • January 13: Performed services on account, $16,920. • January 14: Collected half of the outstanding accounts receivable. January 15: Paid salaries, $6,000. January 28: Performed $4,200 of services for a customer on account. • January 31: The company owed $3,000 of salaries to its employees for the month just ended. • January 31: The company earned $3.100 of revenue that had been received in advance. • January 31: The company performed $1,100 of services for a client that it had not billed or recorded. Required 1. Prepare an income statement for the month ending January 31., 2020. Keep all decimals when performing your calculations. Round final answers to the nearest whole number. Hand write your answer in your rough work. This will be submitted at the end of the test. 2. In the box below. Type in the net income/loss you calculated in your income statement. Round your answer to the nearest whole number.
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Red Oak Corporation Income Statement For the Month End... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
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