Share
Explore BrainMass

Jack's: Income, Retained Earnings, and Balance

The adjusted trial balance of Jacks Financial Planners:

Debit Credit
Cash $17,400
Accounts Receivable 2,200
Office Supplies 1,800
Office Equipment 15,000
Accumulated Depreciation - Office Equipment $4,000
Accounts Payable 4,000
Unearned Service Revenue 5,000
Common Stock 17,000
Retained Earnings 7,400
Dividends 2,500
Service Revenue 6,500
Office Supplies Expense 600
Depreciation Expense 2,500
Rent Expense 1,900
$43,900 $43,900

Using the information from the adjusted trial balance, prepare for the month ending December 31:
1. An income statement;
2. A retained earnings statement
3. A balance sheet.

Solution Preview

Income Statement for the month ending 31 Dec 2007
Income:
Service revenue $6,500
Expenses:
Office Supplies Expense $600
Depreciation Expense $2,500
Rent Expense $1,900
Total expenses $5,000
Net ...

Solution Summary

Instructions on how to create an income statement, a retained earnings statement, and a balance sheet are provided.

$2.19