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    Preparing financial statements with trial balances

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    P4-26A. The adjusted trial balance of Jane's Tutoring Success Company October 31, 2009, is shown on the following page.

    Prepare the income statement, statement of owner's equity, and classified balance sheet in account form for the month of October, 2009.

    See the attached pdf. for the trial balance and use the attached Excel sheet to complete.

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    Solution Preview

    The income statement account- includes all sales, costs of goods sold, taxes, expenses that have been incurred during a business year. And you have to know that revenues add to you income and expenses(including any taxes) have to be deducted from your gross profit. After the expenses have been deducted from your gross profit(if any), then you will know if you have made profit or loss. Items 41-56 on your trial balance, contain the information you will need to construct your income statement. All of the others are part of your balance sheet or owner's equity.

    The statement of owners equity is the second report of the financial statements. Its full name is called the statement of changes in the owners equity. Therefore ...

    Solution Summary

    The solution assists with preparing financial statements with trial balances.