Question
TouchTone Talent Agency performs adjusting entries every month but closes its accounts only at year-end. The companys year-end adjusted trial balance dated December 31, 2011,
TouchTone Talent Agency performs adjusting entries every month but closes its accounts only
at year-end. The companys year-end adjusted trial balance dated December 31, 2011, was:
TouchTone Talent Agency
Adjusted trial balance
31stDecember 2011
Details | Dr. $ | Cr. $ |
Cash | 91,100 |
|
Account Receivables | 4,500 |
|
Supplies | 300 |
|
Equipment | 12,000 |
|
Accumulated depreciation: equipment |
| $ 5,000 |
Accounts payable |
| 1,500 |
Income taxes payable |
| 3,500 |
Capital stock |
| 25,000 |
Retained earnings |
| 45,000 |
Dividends | 2,000 |
|
Agency revenue earned |
| Your Registration no. |
Salary expense | 52,000 |
|
Supply expense | 1,200 |
|
Advertising expense | 300 |
|
Depreciation expense: equipment | 1,000 |
|
Income taxes expense | 11,600 |
|
Total | $176,000 | $176,000 |
Part II-CLO: 3, (10Marks)
Registration no:173114
Required:
- Prepare an Income Statement for the year ended December 31, 2011.
- Statement of Retained Earnings for the year ended December 31, 2011.
- Also, prepare the Balance Sheet dated December 31, 2011.
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