A) i) TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May

Revenue				$	2,540
Expenses:
Rent Expense	$	500
Advertising Expense	$	500
Wages Expense	$	200		$	1,200
Net Income				$	1,340

TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY

Owner's Equity at May 1	$	0
plus: Investment		2,000
plus: Net Income		1,340
less: Withdrawals		0
Owner's Equity at May 31	$	3,340

TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31

ASSETS							LIABILITES AND OWNER'S EQUITY
Current Assets:							Current Liabilities:
Cash	$	1,380					Accounts Payable	$	300
Accounts Receivable	$	1,500					Advertising Payable	$	500
Prepaid Rent	$	500					Advances from Customers	$	200
Prepaid Advertising	$	500
Supplies	$	100		$	3,980
Equipment				$	360		Owner's Equity	$	3,340
Total Assets				$	4,340		Total Liabilities & OE	$	4,340

During June the following transactions occurred:

1) Paid the helper the $200 owed from works done in May (the amount owed is in Accounts Payable).

2) Completed the job for which the customer paid $200 in May. Tops in Topiary collected $1,000 in cash once finished.

3) Paid $500 for the rent of July.

4) At the end of June notices that there are no supplies left. Makes a note to buy some in July.

5) At the end of June notices that there are few flyers left (used for advertising) worth $100 and decides to order some for July. Before ordering, the printer (supplier of flyers) asks to be paid $500 of the amount owed for the flyers done in May. Tops in Topiary pays $500.

6) In June collected in cash $3,000 for 3 jobs are done for a total of $4,200, the rest is owed in account by the customers.

7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years.

8) In June 23^rd Edward Scissorhands withdrew some cash for personal reasons ($3,000).

At the end of the accounting period (June 30^th, T account after AJE), what is the total of Owner's Equity including the Net Income/Net Loss of the period?

ii)

Epsilon Company completed its first year of operation this year. The company distributed dividends of $16,300. The ending balance of retained earnings is $35,000 and the company had revenues of $61,570.

Required 1: expenses this year must be what amount? $

Required 2: Net Income (loss) this year must be what amount? $

iii) AB Ltd.s retained earnings increased by $210 during the year. Also during the year dividends of $2,500 were declared and paid to shareholders.

Required: AB Ltd's Net Income for the year:

iv)

The balance in the Prepaid Insurance Account on January 1 (first day of the fiscal year) for Modern Company was $1,119. On April 1 it renewed its insurance policy with a new insurance company for 3 years making a payment in full of $13,428 to get 36 months of coverage.

Required 1: The adjusting journal entry amount on Prepaid Insurance on January 31 was for: $

Required 2: What is the year end balance of Prepaid Insurance reported in the balance sheet of Dec 31st? $

Required 3: What is the Insurance Expense reported on Annual Income Statement ended on December 31st? $

v)

The balance in the Prepaid Rent Account on January 1 (first day of the fiscal year) for Modern Company was $680. On March 1 it renewed its lease agreement for 1 full year making a payment of 50% of the total annual rent of $3,480 to get a considerable discount on the price.

Required 1: The adjusting journal entry on Prepaid Rent on January 31 was for: $

Required 2: What is the year end balance of Prepaid Rent reported in the balance sheet of Dec 31st? $

Required 3: What is the Rent Expense reported on the annual Income Statement ended on December 31st? $