Question 5 (22 marks)

The adjusted trial balance of Palm Realtors Ltd. at December 31, 2019, appears below:

Palm Realtors Ltd.

Adjusted Trial Balance

December 31, 2019

Cash		$ 8,950
Accounts receivable		53,530
Prepaid rent		2,200
Equipment		45,690
Accumulated amortization				$ 18,930
Accounts payable				15,900
Interest payable				900
Salary payable				3,500
Income tax payable				4,700
Note payable (due 2025)				19,500
Common shares				8,000
Retained earnings				29,325
Dividends		30,000
Commissions				227,480
Depreciation expense		6,260
Salary expense		140,500
Rent expense		26,400
Interest expense		1,500
Income tax expense		13,205
Total		$328,235		$328,235

Required:

1. Prepare in good form a single step statement of earnings (income statement) of Palm Realtors Ltd. for the year ended December 31, 2019. (6 marks)

Palm Realtors Ltd. Statement of Earnings For the Year Ended December 31, 2019