Need help filling out the financial statements (income statement, statement of retained earnings and balance sheet) I cant get them to equal. If image is unclear right click and open in a new tab.
Revenue Morgan Corporation opened the year 20X6, with the following trial balance information: Cash $ 45,000 Accounts Receivable 75,000 Land 130,000 Accounts Payable $ 60,000 Loan Payable 30,000 Capital Stock 50,000 Retained Earnings 110,000 Dividends Salaries Expense Rent Expense Supplies Interest Expense Expense Total 250,000 250,000 Notes: (Hint: adjusting entry may be required at month end for these items.) 1) Useful life is 10 year, no salvage value, so depreciation will be $1,000 a year. 2) The remaining 80% was financed on a loan with 6% interest, due semi-annually. 3) The liability insurance coverage started on 1/1/x6. 4) Workers are paid every two weeks on Friday. 5) Work is scheduled 50% in Jan, 50% in Feb. January's transactions are listed below: Jan. 1 Purchased a new equipment for $10,000 cash. Jan. 2 Collected $10,000 on an open account receivable. Jan. 3 Purchased additional tract of land for $50,000 with 20% cash down. Jan. 5 Provided services on account to a customer (Alpha) for $15,000. Jan. 7 Paid $2,000 for 20x6 liability insurance coverage. Jan. 9 Paid salaries of $3,000. Jan. 12 Customers (Bravo) paid $11,000 for work to be done in Jan/Feb. Jan. 15 Purchased office supplies on account, $2,000. Jan. 17 The company paid shareholders a $2,500 dividend. Jan. 20 Paid Feb - April (3 months) rent of $2,100 in advance. Jan. 23 Paid salaries of $4,000. Jan. 24 Paid $16,000 on the open accounts payable. Jan. 29 Collected $50,000 on accounts receivable. Jan. 31 Pay off old loan of $30,000. (old = carried over from last year) Jan. 31 Work at customers (Bravo) was completed as scheduled. 6) Per rent agreement, rent must be paid in advance every 3 months. see note 3 7) Old loan had 7% interest, due at the end of each month. Page 1 Credit GENERAL JOURNAL Date Accounts 1-Jan Equipment Cash Debit 10,000 10,000 2-Jan Cash 10,000 Accounts Receivable 10,000 3-Jan 50,000 Land Cash Loan Payable 10,000 40,000) 5-Jan Accounts Receivable 15,000 Revenues 15,000 7-Jan 2,000 Prepaid Insurance Cash 2,000 9-Jan Salaries Expense 3,000 Cash 3,000 12-Jan 11,000 Cash Unearned Revenue 11,000 15-Jan 2,000 Supplies Expense Accounts Payable 2,000 GENERAL JOURNAL Page 2 Date Accounts Debit Credit 17-Jan 2,500 Dividends Cash 2,500 20-Jan 2,100 Prepaid Rent Cash 2,100 23-Jan 4,000 Salaries Expense Cash 4,000 24-Jan 16,000 Accounts Payable Cash 16,000 29-Jan Cash 50,000 Accounts Receivable 50,000 31-Jan Loan Payable Interest Expense Cash 30,000 175 30,175 31-Jan 5,500 Unearned Revenue Revenues 5,500 MORGAN CORPORATION Unadjusted Trial Balance January 31, 20X6 Account Debits Credits Cash $ $ Accounts Receivable Prepaid Insurance Prepaid Rent 36,225 30,000 2,000 2,100 180,000 10,000 Land 46,000 5,500 40,000 50,000 110,000 Equipment Accounts Payable Unearned Revenues Loan Payable Capital Stock Retained Earnings Dividends Revenues Salaries Expense Rent Expense Supplies Expense Interest Expense 2,500 20,500 7,000 2,000 175 Total $ 272,000 $ $ 272,000 Nc MORGAN CORPORATION Income Statement For the Month Ending January 31, 20X6 Revenues Services to customers $ Expenses Salaries $ Supplies Rent Interest Insurance Net income MORGAN CORPORATION Statement of Retained Earnings For the Month Ending January 31, 20X6 Beginning retained earnings $ Plus: Net income $ Less: Dividends Ending retained earnings MORGAN CORPORATION Balance Sheet January 31, 20X6 Assets $ Cash Accounts receivable Prepaid rent Prepaid insurance Land Equipment Less: Accumulated depreciation Total assets $ Liabilities Accounts payable Interest payable Unearned revenue Loan payable Total liabilities $ Stockholders' equity Capital stock Retained earnings Total stockholders' equity Total liabilities and equity $
