Given:

HCD for catering services company

Income statement

For the month ended November 30,2018

Revenue

Service revenue 109,800

Expenses

Rent expense 800

Utilities expense 1,500

Salaries expense 6,250

Advertising expense 1,500

Sailing expense 700

Depreciation expense 5000

Total expenses 15750

Net income 94050

HCD for catering services company

Retained earning

For the month ended November 30,2018

Previous retained earnings 0

Net income 94050

94050

Dividend 0

Retained earnings 94050

HCD for catering services company

Balance sheet

November 30,2018

Assets

Current assets

Cash 196,550

Prepaid insurance 1,200

Account receivable 1,800

Inventory 1,500

Supplies 5,000

Total current assets 206050

Fixed assets

Equipment 103000

Accumulated depreciation (-)5000

Total fixed assets 98000

Total assets 304050

Liabilities

STL

Account payable 34,000

Note payable 22,000

Unearned service revenue 4,000

Total liabilities 6000

Equity

Common stock 150,000

Retained earnings 94050

244050

Total liabilities and equity 250050

Task:

a) Journalize the following adjustments related to the end of November 30: 1. Depreciation of the fixed assets for the month was $1,200 2. One month of the insurance expired 3. An inventory count shows $2,000 of supplies on hand at November 30 4. All the unearned revenue was earned

b) Prepare an adjusted trial balance

c) Prepare an income statement, owners equity statement and a balance sheet after adjustment