Unadjusted trial balance

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Hudson Bay Research
Unadjusted Trial Balance
April 30, 2020
		Balance
	Account Title	Debit	Credit
	Cash	$38,000
	Accounts receivable	40,000
	Prepaid rent	18,000
	Supplies	3,800
	Furniture	78,000
	Accumulated amortizationfurniture		$13,800
	Accounts payable		20,000
	Salaries payable		0
	J. Shaw, capital		179,800
	J. Shaw, withdrawals	48,000
	Consulting revenue		127,000
	Salaries expense	44,000
	Rent expense	37,000
	Utilities expense	26,000
	Amortization expensefurniture	7,800
	Supplies expense	0
	Total	$340,600	$340,600

Accrued consulting revenue at April 30, $4,000.
b.	The prepaid balance of $18,000 represented one year of rent. Four months of prepaid rent have been used.
c.	Supplies remaining on hand at April 30, $980.
d.	The estimated useful life of the furniture is 10 years; it will have no value at the end of 10 years, and the straight-line method of amortization is used. Amortization expense had only been taken for the first 11 months.
e.	Accrued salaries expense at April 30 is for three days. The five-day weekly payroll is $7,000.

Requirement 1. Prepare the adjusted trial balance of

Hudson Bay

Research at

April

30,

2020

by sketching T-accounts in your notes to calculate the new balances.

Complete the adjusted trial balance. Remember to consider the adjustments provided in the problem. (Round all adjustments to the nearest whole dollar. If a box is not used in the adjusted trial balance, leave the box empty; do not enter a zero.)

	Hudson Bay Research
	Adjusted Trial Balance
	April 30, 2020
		Balance
	Account Title	Debit	Credit
	Cash
	Accounts receivable
	Prepaid rent
	Supplies
	Furniture
	Accumulated amortizationfurniture
	Accounts payable
	Salaries payable
	J. Shaw, capital
	J. Shaw, withdrawals
	Consulting revenue
	Salaries expense
	Rent expense
	Utilities expense
	Amortization expensefurniture
	Supplies expense
	Total

Requirement 2. Prepare the income statement and the statement of owner's equity for the year ended

April

30,

2020,

and the balance sheet at

April

30,

2020.

Write a short description of how the three financial statements are linked.

Begin with the income statement.

	Revenue:
	Expenses:
	Total expenses
	Net income

Next, prepare the statement of owner's equity.

	Add:
	Less:

Finally, prepare the balance sheet. Begin with the heading, and then complete the body of the statement.

Assets

Liabilities

Total liabilities

Owner's Equity

Total assets

Total liabilities and owner's equity

Write a short description of how the three financial statements are linked.

Expenses

Net income (or net loss)

Revenue

from the income statement is transferred to the

balance sheet.

statement of owner's equity.

trial balance.

The ending balance of

capital

expenses

revenues

withdrawals

is then transferred to the owner's equity section of the balance sheet.