Answer:
SMART TOUCH LEARNING
Income Statement
December 31, 2016
Service Revenue 20,400
Salaries Expense 3,300
Depreciation Expense
- Furniture 400
Insurance Expense 300
Utilities Expense 390
Rent Expense 1,600
Supplies Expense 80 6,070
Net Income 14,330
Statement of Retained Earnings
December 31, 2016
Net Income 14,330
Dividends (2,200)
Balance, December 31, 2016 12,130
Balance Sheet
December 31, 2016
Assets:
Cash 42,310
Accounts Receivable 2,400
Office Supplies 420
Prepaid Insurance 900
Total current assets $46,030
Furniture 13,300
Accumulated
Depreciation (400) 12,900
Total assets $58,930
Liabilities + Equity:
Salaries Payable 1,100
Unearned Revenue 4,200
Common Stock 41,500
Retained Earnings 12,130
Total Liabilities + Equity $58,930
Explanation:
a) Data:
SMART TOUCH LEARNING
Adjusted Trial Balance
December 31, 2016
Balance
Account Title Debit Credit
Cash 42,310
Accounts Receivable 2,400
Office Supplies 420
Prepaid Insurance 900
Furniture 13,300
Accumulated Depreciation
- Furniture 400
Salaries Payable 1,100
Unearned Revenue 4,200
Common Stock 41,500
Dividends 2,200
Service Revenue 20,400
Salaries Expense 3,300
Depreciation Expense
- Furniture 400
Insurance Expense 300
Utilities Expense 390
Rent Expense 1,600
Supplies Expense 80
Total 67,600 67,600
