Answered step by step
Verified Expert Solution
Question
1 Approved Answer
SuperGym Inc. operates a gymnasium and receives its revenue by providing gym services to members. The following represents the fully adjusted trial balance of
SuperGym Inc. operates a gymnasium and receives its revenue by providing gym services to members. The following represents the fully adjusted trial balance of SuperGym Inc. at March 31, 2024 before the closing entries for the quarter ended March 31, 2024: Accounts receivable Accounts payable Debit Credit $40,000 45,000 Accumulated depreciation: Equipment 50,000 Administrative expenses 12,000 Bank loan payable (due September 2024) 80,000 Cash 60,000 Contributed capital 80,000* Deferred revenue (services to be delivered in 2024) 50,000 Depreciation expense 10,000 Equipment 500,000 Income tax expense 50,000 Interest expenses 21,000 Long-term investments 190,000 Note payable (due February 2028) 180,000 Prepaid expenses 35,000 Rental expenses 30,000 Retained earnings Sales revenue Selling expenses 122,000** 701,000 30,000 Supplies Utility expenses Wage expenses Total 30,000*** 60,000 240,000 1,308,000 1,308,000 * During the year, $40,000 of shares were issued. There were no share repurchases. **Opening retained earnings were $128,000. Dividends declared and paid during the year were $6,000. *** Represents the amount of supplies on hand at the end of March 31, 2024. Required 1. Prepare a Classified Statement of Earnings for the quarter ended March 31, 2024. 2. Prepare a Statement of Changes in Shareholder's Equity for the quarter ended March 31, 2024. 3. Prepare a Classified Statement of Financial Position as at March 31, 2024. Proper format is required.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started