Question
Transaction Analysis, Trial Balance, and Financial Statements Kate Smith operates the Smith Dance Studio. The trial balance as of June 30 is as follows: SMITH
Transaction Analysis, Trial Balance, and Financial Statements
Kate Smith operates the Smith Dance Studio. The trial balance as of June 30 is as follows:
SMITH DANCE STUDIO
Trial Balance
June 30DebitCreditCash$25,110Accounts Receivable13,480Piano6,000Accounts Payable180Notes Payable9,500Common Stock11,870Retained Earnings13,780Dividends900Instructional Fees Earned9,600Performance Revenue6,300Rent Expense4,600Utilities Expense480Advertising Expense550Interest Expense110Totals50,23050,230
Required
c. Prepare an income statement for the month of June.
d. Prepare a statement of stockholders' equity for the month of June.
e. Prepare a balance sheet as of June 30.
f. Prepare closing entries.
g. Prepare a post-closing trial balance.
c.
SMITH DANCE STUDIO
Income Statement
For the Month Ended June 30RevenueInstructional Fees EarnedAnswer
Performance RevenueAnswer
Total RevenuesAnswer
ExpensesRent ExpenseAnswer
Utilities ExpenseAnswer
Advertising ExpenseAnswer
Interest ExpenseAnswer
Total ExpensesAnswer
Net IncomeAnswer
d.
SMITH DANCE STUDIO
Statement of Stockholders Equity
For the Month Ended June 30Common StockRetained EarningsTotalBalance, June 1Answer
Answer
Answer
Add: Net IncomeAnswer
Answer
Answer
Less: Dividends paid(enter as negative)Answer
Answer
Answer
Balance, June 30Answer
Answer
Answer
e.
SMITHDANCE STUDIO
Balance Sheet
June 30AssetsLiabilitiesAnswer
Cash
Accounts Receivable
Accounts Payable
Common Stock
Retained Earnings
Answer
Answer
Cash
Accounts Receivable
Accounts Payable
Common Stock
Retained Earnings
Answer
Answer
Cash
Accounts Receivable
Accounts Payable
Common Stock
Retained Earnings
Answer
Notes PayableAnswer
PianoAnswer
Total LiabilitiesAnswer
Stockholders' EquityAnswer
Cash
Accounts Receivable
Accounts Payable
Common Stock
Retained Earnings
Answer
Answer
Cash
Accounts Receivable
Accounts Payable
Common Stock
Retained Earnings
Answer
Total Stockholders' EquityAnswer
Total AssetsAnswer
Total Liabilities and Stockholders' EquityAnswer
f.
General JournalDateDescriptionDebitCreditJune 30Instructional Fees earnedAnswer
Answer
Answer
Dividends
Interest expense
Performance revenue
Retained earnings
Answer
Answer
Answer
Dividends
Interest expense
Performance revenue
Retained earnings
Answer
Answer
To close revenue accounts.June 30Answer
Dividends
Interest expense
Performance revenue
Retained earnings
Answer
Answer
Rent expenseAnswer
Answer
Utilities expenseAnswer
Answer
Advertising expenseAnswer
Answer
Answer
Dividends
Interest expense
Performance revenue
Retained earnings
Answer
Answer
To close the expense accounts.June 30Answer
Dividends
Interest expense
Performance revenue
Retained earnings
Answer
Answer
Answer
Dividends
Interest expense
Performance revenue
Retained earnings
Answer
Answer
To the closed the dividends account.
g.
SMITH DANCE STUDIO
Post-Closing Trial Balance
June 30DebitCreditCashAnswer
Answer
Accounts receivableAnswer
Answer
PianoAnswer
Answer
Accounts payableAnswer
Answer
Notes payableAnswer
Answer
Common stockAnswer
Answer
Retained earningsAnswer
Answer
TotalsAnswer
Answer
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Financial Accounting
Authors: Jeffrey Waybright, Robert Kemp
1st Edition
013606048X, 9780136060482
