QUESTION TWO

King company prepares it financial statements at the end of every quarter. The adjusted trial balance as at April 1 2020 is shown below:

	debit	credit
	(K)	(K)
cash	6700
Accumulated depreciation
Equipment		850
Notes payable		5000
Account payable		1510
Salaries and wages payable		400
Account receivable	600
Prepaid rent	900
Supplies	1,000
Equipment	15,000
Dividends	600
Salaries and wages expenses	9,400
Interest payable		50
Unearned rent revenue		500
Share capital- Ordinary		14,000
Service revenue		14,200
Rent revenue		800
Rent expense	1,500
Depreciation expense	850
Supplies expense	200
Utilities expense	510
Interest expense	50
TOTAL	37,310	37,310

Required:

1. Determine the net income for the quarter first quarter (5 marks)

2. Determine the total assets and total liabilities at at April 1 2020 (5 marks)

3. Determine the amount of retained earnings as at April 1 2020 (5 marks)

4. Who are the users of accounting information .?