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    Jack's: Income, Retained Earnings, and Balance

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    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.

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    Solution Preview

    Income Statement for the month ending 31 Dec 2007
    Service revenue $6,500
    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.