Question
The adjusted trial balance of Palm Realtors Ltd. at December 31, 2019, appears below: Palm Realtors Ltd. Adjusted Trial Balance December 31, 2019 Cash $
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:
- 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 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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