Question
I need to prepare an Income Statement for the attached Adjusted Trial Balance that I just prepared accordingly. I started the Income Statement and realize
I need to prepare an Income Statement for the attached Adjusted Trial Balance that I just prepared accordingly. I started the Income Statement and realize it gets recorded by larger items first. There are no fees earned ... just capital stock. Would I begin with Capital Stock ?
| BELLA COMPUTERS | ||
| ADJUSTED TRIAL BALANCE | ||
| PERIOD ENDING JUNE 30, 2020 | ||
| DESCRIPTION | DEBIT | CREDIT |
| CASH | $ 319,620 | |
| DEPOSIT ELECTRIC COMPANY | $ 500 | |
| DEPOSIT WATER SEWER GARBAGE | $ 200 | |
| DEPOSIT TELEPHONE | $ 250 | |
| OFFICE SUPPLIES | $ 500 | |
| PREPAID INSURANCE | $ 3,600 | |
| PREPAID LEASE | $ 11,000 | |
| MACHINERY & EQUIPMENT | $ 100,000 | |
| FURNITURE & FIXTURES | $ 20,000 | |
| ACCUMULATED DEPRECIATION - FURNITURE & FIXTURES | $ 167 | |
| ACCUMULATED DEPRECIATION - MACHINERY & EQUIPMENT | $ 1,190 | |
| ACCOUNTS PAYABLE | $ 1,200 | |
| UNEARNED REVENUE | $ 50,000 | |
| NOTES PAYABLE - FURNITURE & FIXTURES | $ 20,000 | |
| NOTES PAYABLE - MACHINERY & EQUIPMENT | $ 90,000 | |
| CAPITAL STOCK | $ 300,000 | |
| WAGES PAYABLE | $ 450.00 | |
| ACCOUNTING & LEGAL EXPENSE | $ 2,500 | |
| INDEPENDENT CONTRACTOR | $ 900 | |
| UTILITIES EXPENSE | $ 430 | |
| SUPPLIES EXPENSE | $ 700 | |
| DEPRECIATION - FURNITURE & FIXTURES | $ 167 | |
| DEPRECIATION - MACHINERY & EQUIPMENT | $ 1,190 | |
| LEASE EXPENSE | $ 1,000 | |
| INDEPENDENT CONTRACTOR | $ 450 | |
| $ 463,007 | $ 463,007 | |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Forensic Accounting And Fraud Examination
Authors: Mary Jo Kranacher, Richard Riley
2nd Edition
1119494338, 9781119494331
