Question
Required information Problem 3-4A Interpreting unadjusted and adjusted trial balances, and preparing financial statements LO P1, P2, P3 [The following information applies to the questions
Required information
Problem 3-4A Interpreting unadjusted and adjusted trial balances, and preparing financial statements LO P1, P2, P3
[The following information applies to the questions displayed below.] A six-column table for JKL Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31, 2017. The last two columns contain the adjusted trial balance as of the same date.
Unadjusted Trial Balance | Adjusted Trial Balance | ||||||||
Cash | $ | 34,000 | $ | 34,000 | |||||
Accounts receivable | 14,000 | 22,000 | |||||||
Office supplies | 16,000 | 2,000 | |||||||
Prepaid insurance | 8,540 | 2,960 | |||||||
Office equipment | 84,000 | 84,000 | |||||||
Accum. DepreciationOffice equip. | $ | 14,000 | $ | 20,000 | |||||
Accounts payable | 9,100 | 10,000 | |||||||
Interest payable | 0 | 1,000 | |||||||
Salaries payable | 0 | 7,000 | |||||||
Unearned consulting fees | 18,000 | 15,000 | |||||||
Long-term notes payable | 52,000 | 52,000 | |||||||
Common stock | 15,000 | 15,000 | |||||||
Retained earnings | 25,000 | 25,000 | |||||||
Dividends | 5,000 | 5,000 | |||||||
Consulting fees earned | 123,240 | 134,240 | |||||||
Depreciation expenseOffice equip. | 0 | 6,000 | |||||||
Salaries expense | 67,000 | 74,000 | |||||||
Interest expense | 1,200 | 2,200 | |||||||
Insurance expense | 0 | 5,580 | |||||||
Rent expense | 14,500 | 14,500 | |||||||
Office supplies expense | 0 | 14,000 | |||||||
Advertising expense | 12,100 | 13,000 | |||||||
Totals | $ | 256,340 | $ | 256,340 | $ | 279,240 | $ | 279,240 | |
Problem 3-4A Part 2
2(a-1) Prepare JKL Company's income statement for the year ended July 31, 2017. 2(a-2) Prepare JKL Company's statement of retained earnings for the year ended July 31, 2017. Note: Retained earnings at July 31, 2016, was $25,000, and the current-year dividends were $5,000. 2(b) Prepare JKL Company's the balance sheet as of July 31, 2017.
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