Question
Using the unadjusted trial balance provided below, you are required to : Prepare an Income Statement for the year ending December 31; and, Calculate the
Using the unadjusted trial balance provided below, you are required to :
- Prepare an Income Statement for the year ending December 31; and,
- Calculate the Net Profit Margin.
Note: For the Net Profit Margin, do not forget the "%" sign and round your answer up to 2 decimal places
The following accounts are taken from Equilibrium Riding, Inc., a company that specializes in occupational therapy and horseback riding lessons, as of December 31
EQUILIBRIUM RIDING, INC.
Unadjusted Trial Balance
At December 31
| Account Name | Debits | Credits |
| Cash | $ 59,750 | |
| Accounts Receivable | 3,300 | |
| Prepaid Insurance | 4,700 | |
| Equipment | 64,600 | |
| Land | 23,000 | |
| Accounts Payable | $ 29,230 | |
| Deferred Revenue | 1,500 | |
| Notes Payable(long-term) | 74,000 | |
| Common Stock | 5,000 | |
| Retained Earnings | 14,500 | |
| Dividends | 0 | |
| Service Revenue | 35,700 | |
| Salaries and Wages Expense | 3,900 | |
| Repairs and Maintenance Expense | 410 | |
| Other expenses | 270 | |
| Totals | $159,930 | $159,930 |
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Current Issues In Auditing
Authors: Michael J Sherer, W Stuart Turley
3rd Edition
1853963658, 978-1853963650
