Question

Problem 3-4 (2)

Determining Adjusting Entries and Tracing Their Effects to Financial Statements

Kitz Limo Service, Inc., was organized to provide limousine service between the airport and various suburban locations. It has just completed its second year of business. Its trial balance follows.

After the adjusting entries were made, the accounts and their balances are as follows:

4a. Prepare an adjusted trial balance for Kitz Limo Service, Inc. List all accounts in the order of Assets, Liabilities, Stockholders’ equity, Revenues, and Expenses. If an amount box does not require an entry, leave it blank.

Kitz Limo Service, Inc.

Adjusted Trial Balance

June 30, 2014

4b. Prepare an income statement for Kitz Limo Service, Inc.

Kitz Limo Service, Inc.

Income Statement

For the Year Ended June 30, 2014

Revenues

 

Expenses

Total expenses

4c. Prepare a statement of retained earnings for Kitz Limo Service, Inc.

Kitz Limo Service, Inc.

Statement of Retained Earnings

For the Year Ended June 30, 2014

Subtotal

4d. Prepare a balance sheet for Kitz Limo Service, Inc.

Kitz Limo Service, Inc.

June 30, 2014

Total assets

Total liabilities

Total stockholders’ equity

Total liabilities and stockholder’s equity

Kitz Limo Service, Inc.

Trial Balance

June 30, 2014

Cash (111)

 

9,812

 

 

Accounts Receivable (113)

 

14,227

 

 

Prepaid Rent (117)

 

12,000

 

 

Prepaid Insurance (118)

 

4,900

 

 

Prepaid Maintenance (119)

 

12,000

 

 

Spare Parts (140)

 

11,310

 

 

Limousines (148)

 

200,000

 

 

Accumulated Depreciation – Limousines (149)

 

 

 

25,000

Notes Payable (211)

 

 

 

45,000

Unearned Passenger Service Revenue (212)

 

 

 

30,000

Common Stock (311)

 

 

 

30,000

Retained Earnings (312)

 

 

 

48,211

Dividends (313)

 

20,000

 

 

Passenger Service Revenue (411)

 

 

 

428,498

Gas and Oil Expense (510)

 

89,300

 

 

Salaries Expense (511)

 

206,360

 

 

Advertising Expense (513)

 

26,800

 

 

 

 

606,709

 

606,709

 

         

 



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