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XYZ commenced operations on January 1st 2019. The unadjusted Trial Balance for the first year of operations is given below: XYZ limited Unadjusted Trial Balance for the year ended 12/31/2019 Dr Cr Cash 40,000 Supplies 40,000 Accounts receivable 40,000 Equipment 200,000 Notes Payable 60,000 Contributed Capital 40,000 Revenue 300,000 Wages Expenses 60,000 Other Expenses 20,000 Total 400,000 400,000 Notes: Supplies in the warehouse as of 12/31/2019 were determined to be $10,000 Equipment was purchased on 01/01/2019 and will be depreciated over 5 years. There is no salvage value. After the unadjusted trial balance was prepared, Dividends of $30,000 were declared for the year ended 12/31/2019. Prepare an Income Statement and Balance Sheet in good form (i.e. Important to show the headings correctly).

Respuesta :

anthougo

Answer:

XYZ

Income Statement

for the year ended December 31, 2019

Revenue                               $300,000

Expenses:

Wages Expenses    60,000

Other Expenses     20,000

Supplies Expense  30,000

Depreciation Exp.  40,000   150,000

Net Income                         $150,000

Dividends declared              (30,000)

Retained Earnings            $120,000

Balance Sheet

As of December 31, 2019:

Assets:

Current Assets:

Cash                           40,000

Supplies                     10,000

Accounts receivable 40,000

Total current assets                 $90,000

Equipment              200,000

less Depreciation   (40,000)    160,000

Total assets                           $250,000

Liabilities + Equity

Liabilities:

Dividends payable                     30,000

Notes Payable                            60,000

Contributed Capital                   40,000

Retained Earnings                    120,000

Total liabilities + Equity         $250,000

Explanation:

Unadjusted Trial Balance

as of December 31, 2019

                                      Dr          Cr

Cash                           40,000

Supplies                     40,000

Accounts receivable 40,000

Equipment              200,000

Notes Payable                           60,000

Contributed Capital                  40,000

Revenue                                 300,000

Wages Expenses    60,000

Other Expenses     20,000

Total                     400,000  400,000

Supplies Expense $30,000

Supplies balance = $10,000

Depreciation of Equipment = $40,000 ($200,000/5)

Dividends declared = $30,000

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