Question
Demo Consulting is a consulting firm owned and operated by Jesse Flatt. The following end-of-period spreadsheet was prepared for the year ended August 31, 20Y9:
Demo Consulting is a consulting firm owned and operated by Jesse Flatt. The following end-of-period spreadsheet was prepared for the year ended August 31, 20Y9:
Demo Consulting | ||||||||
End-of-Period Spreadsheet | ||||||||
For the Year Ended August 31, 20Y9 | ||||||||
Unadjusted | Adjusted | |||||||
Trial Balance | Adjustments | Trial Balance | ||||||
Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | ||
Cash | 12,320 | 12,320 | ||||||
Accounts Receivable | 29,330 | 29,330 | ||||||
Supplies | 3,110 | 2,610 | 500 | |||||
Land | 25,520 | 25,520 | ||||||
Office Equipment | 24,050 | 24,050 | ||||||
Accumulated Depreciation | 3,260 | 1,550 | 4,810 | |||||
Accounts Payable | 7,920 | 7,920 | ||||||
Salaries Payable | 380 | 380 | ||||||
Common Stock | 9,900 | 9,900 | ||||||
Retained Earnings | 20,020 | 20,020 | ||||||
Dividends | 3,810 | 3,810 | ||||||
Fees Earned | 80,800 | 80,800 | ||||||
Salary Expense | 21,410 | 380 | 21,790 | |||||
Supplies Expense | 2,610 | 2,610 | ||||||
Depreciation Expense | 1,550 | 1,550 | ||||||
Miscellaneous Expense | 2,350 | 2,350 | ||||||
121,900 | 121,900 | 4,540 | 4,540 | 123,830 | 123,830 |
Based on the preceding spreadsheet, prepare an income statement for Demo Consulting.
Demo Consulting | ||
Income Statement | ||
For the Year Ended August 31, 20Y9 | ||
Fees earned | $ | |
Expenses: | ||
Salary expense | $ | |
Supplies expense | ||
Depreciation expense | ||
Miscellaneous expense | ||
Total expenses | ||
Net income | $ |
Feedback
Revenue and expense accounts flow into the income statement.
Based on the preceding spreadsheet, prepare a statement of stockholders’ equity for Demo Consulting. During the year ended August 31, 20Y9, $3,100 of additional common stock was issued. If an amount box does not require an entry, leave it blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.
Demo Consulting | |||
Statement of Stockholders’ Equity | |||
For the Year Ended August 31, 20Y9 | |||
Common Stock | Retained Earnings | Total | |
Balances, September 1, 20Y8 | $ | $ | $ |
Issued common stock | |||
Net income | |||
Dividends | |||
Balances, August 31, 20Y9 | $ | $ | $ |
Feedback
The statement of stockholders' equity shows the beginning balances of common stock and retained earnings. The common stock balance will be increased by any stock issued during the period, and retained earnings will be increased by any net income and decreased by any net losses and dividends.
Based on the preceding spreadsheet, prepare a balance sheet for Demo Consulting.
Demo Consulting | |||
Balance Sheet | |||
August 31, 20Y9 | |||
Assets | |||
Current assets: | |||
Cash | $ | ||
Accounts receivable | |||
Supplies | |||
Total current assets | $ | ||
Property, plant, and equipment: | |||
Land | $ | ||
Office equipment | $ | ||
Accumulated depreciation | |||
Book value-office equipment | |||
Total property, plant, and equipment | |||
Total assets | $ | ||
Liabilities | |||
Current liabilities: | |||
Accounts payable | $ | ||
Salaries payable | |||
Total liabilities | $ | ||
Stockholders' Equity | |||
Common stock | $ | ||
Retained earnings | |||
Total stockholders' equity | |||
Total liabilities and stockholders' equity | $ |
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