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Q.1 The adjusted trial balance of RAK Corporation on December 31, 20120, follows. RAK Corporation Adjusted Trial Balance Account Title Debit Credit Cash 29,180 Prepaid
Q.1 The adjusted trial balance of RAK Corporation on December 31, 20120, follows. RAK Corporation Adjusted Trial Balance Account Title Debit Credit Cash 29,180 Prepaid insurance 4,050 Prepaid rent 6,750 Accounts receivable 467 Office supplies 333 Machinery 30,000 Equipment 40,000 Note payable 10,000 Accounts Payable 5,000 Unearned service revenue 15,000 Interest payable 41.7 Accumulated depreciation 1,500 Owner's capital 80,000 Owner's withdrawals 5,000 Service revenue 17,567 Insurance expense 1,350 Advertising expense 640 Rent expense 6,750 Salaries and wages expenses 890 Utility expenses 490 Depreciation expense 1,500 Interest expense 41.7 Supplies expense 1,667 TOTAL 129,108.3 129,108.3 Assume there are no owner investments in 2020. a. Prepare an income statement for the year 2020 (30 marks). b. Prepare a statement of owner's equity for the year 2020 (30 marks). c. Prepare a classified balance sheet at December 31, 2020 (40 marks). RAK Corporation Income Statement For the Month Ending December 31, 2020 RAK Corporation Owners Equity Statement For the Month Ending December 31, 2020 RAK Corporation Owners Equity Statement For the Month Ending December 31, 2020 ASSETS LIABILITIES EQUITY
Q.1 The adjusted trial balance of RAK Corporation on December 31, 20120, follows.
RAK Corporation
Adjusted Trial Balance
Account Title
Debit
Credit
Cash
29,180
Prepaid insurance
4,050
Prepaid rent
6,750
Accounts receivable
467
Office supplies
333
Machinery
30,000
Equipment
40,000
Note payable
10,000
Accounts Payable
5,000
Unearned service revenue
15,000
Interest payable
41.7
Accumulated depreciation
1,500
Owner's capital
80,000
Owner's withdrawals
5,000
Service revenue
17,567
Insurance expense
1,350
Advertising expense
640
Rent expense
6,750
Salaries and wages expenses
890
Utility expenses
490
Depreciation expense
1,500
Interest expense
41.7
Supplies expense
1,667
TOTAL
129,108.3
129,108.3
Assume there are no owner investments in 2020.
a. Prepare an income statement for the year 2020 (30 marks).
b. Prepare a statement of owner's equity for the year 2020 (30 marks).
c. Prepare a classified balance sheet at December 31, 2020 (40 marks).
RAK Corporation
Income Statement
For the Month Ending December 31, 2020
RAK Corporation
Owners Equity Statement
For the Month Ending December 31, 2020
RAK Corporation
Owners Equity Statement
For the Month Ending December 31, 2020
ASSETS
LIABILITIES
EQUITY
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
