Adjusting Entries Account Wages expense Wages payable Debit Credit 12,000 12000 1 6,000 Unearned revenue Sales Revenue 2 6,000 19,890 Bad Debts expense Allowance for doubtful accounts 3 19,890 1833 Interest Expense Interest payable 4 1833 14,000 Supply expense Supplies 5 14000 10,000 Depreciation Accumulated depreciation 6 10000 18,000 Rent expense Prepaid rent 7 18000 34,390 Income tax expense Income tax payable 8 34390 Credit Account Title Cash Short term Investment Account Receivable Allowances for doubtful Accounts Supplies Inventory Prepaid rent Land Equipment Accumulated Depreciation Trade Mark Account payable Wages payable Interest Payable Income tax Payable Unearned revenue Notes Payable Common stock Retained earnings Work Sheet Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet As on 31 December 2020 As on 31 December 2020 As on 31 December 2020 As on 31 December 2020 Debit Credit Debit Credit Debit Credit Debit Debit Credit 90,000 90,000 90,000 25,000 25,000 25,000 45,000 45,000 45,000 1,000 19,8901 20,8901 20,890 22,000 14,000 8,000 8,000 35,000 35,000 35,000 36,000 18,000 18,000 18,000 217,000 217,000 217,000 110,000 110,000 110,000 20,000 10,000 30,000 30,000 30,000 30,000 30,000 27,000 27,000 27,000 15,000 12,000 27,000 27,000 0 1,833 1,833 1,833 0 34,390 34,390 34,390 12,000 6,000 6,000 6,000 50,000 50,000 50,000 75,000 75,000 75,000 200,000 200,000 200,000 50,000 50,000 50,000 657,000 6,000 663,000 663,000 Dividend Sales revenue Cost of goods sold Wages expense Rent expense Bad Debts expense Supply expense Depreciation expense Interest expense Interest Revenue Income Tax expense Totals Net Income Totals 307,000 80,000 0 0 15,000 a 12,000 18,000 19890 14,000 10,000 1833 307,000 92,000 18,000 19,890 29,000 10,000 1,833 307,000 92,000 18,000 19,890 29,000 10,000 1,833 0 5,000 5,000 5,000 0 34,390 116113 34,3901 1140113 1062000 1062000 116113 1140113 34,390 512113 155887 668000 628000 472113 155887 628000 6280001 Dec 31, 2020 SALES REVENUE Total service revenue OPERATING EXPENSES Selling expenses Total selling expenses General and administrative expenses Page 1 Total general and administrative expenses Total operating expenses Total income from operations OTHER REVENUES AND (EXPENSES) Total income before tax Net income Earnings per share (EPS) See Notes to the Financial Statements Adjusting Entries Account Wages expense Wages payable Debit Credit 12,000 12000 1 6,000 Unearned revenue Sales Revenue 2 6,000 19,890 Bad Debts expense Allowance for doubtful accounts 3 19,890 1833 Interest Expense Interest payable 4 1833 14,000 Supply expense Supplies 5 14000 10,000 Depreciation Accumulated depreciation 6 10000 18,000 Rent expense Prepaid rent 7 18000 34,390 Income tax expense Income tax payable 8 34390 Credit Account Title Cash Short term Investment Account Receivable Allowances for doubtful Accounts Supplies Inventory Prepaid rent Land Equipment Accumulated Depreciation Trade Mark Account payable Wages payable Interest Payable Income tax Payable Unearned revenue Notes Payable Common stock Retained earnings Work Sheet Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet As on 31 December 2020 As on 31 December 2020 As on 31 December 2020 As on 31 December 2020 Debit Credit Debit Credit Debit Credit Debit Debit Credit 90,000 90,000 90,000 25,000 25,000 25,000 45,000 45,000 45,000 1,000 19,8901 20,8901 20,890 22,000 14,000 8,000 8,000 35,000 35,000 35,000 36,000 18,000 18,000 18,000 217,000 217,000 217,000 110,000 110,000 110,000 20,000 10,000 30,000 30,000 30,000 30,000 30,000 27,000 27,000 27,000 15,000 12,000 27,000 27,000 0 1,833 1,833 1,833 0 34,390 34,390 34,390 12,000 6,000 6,000 6,000 50,000 50,000 50,000 75,000 75,000 75,000 200,000 200,000 200,000 50,000 50,000 50,000 657,000 6,000 663,000 663,000 Dividend Sales revenue Cost of goods sold Wages expense Rent expense Bad Debts expense Supply expense Depreciation expense Interest expense Interest Revenue Income Tax expense Totals Net Income Totals 307,000 80,000 0 0 15,000 a 12,000 18,000 19890 14,000 10,000 1833 307,000 92,000 18,000 19,890 29,000 10,000 1,833 307,000 92,000 18,000 19,890 29,000 10,000 1,833 0 5,000 5,000 5,000 0 34,390 116113 34,3901 1140113 1062000 1062000 116113 1140113 34,390 512113 155887 668000 628000 472113 155887 628000 6280001 Dec 31, 2020 SALES REVENUE Total service revenue OPERATING EXPENSES Selling expenses Total selling expenses General and administrative expenses Page 1 Total general and administrative expenses Total operating expenses Total income from operations OTHER REVENUES AND (EXPENSES) Total income before tax Net income Earnings per share (EPS) See Notes to the Financial Statements