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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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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 ...

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The solution assists with preparing financial statements with trial balances.

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Prepare Financial Statements from Adjusted Trial Balance Worksheet

Prepare Financial Statements from Adjusted Trial Balance Worksheet

The adjusted balances taken from the general ledger of Coopertown Suppliers, Inc. are listed below in general ledger order. Transfer these accounts and balances to a spreadsheet worksheet and prepare an Income statement, Balance Sheet, and Statement of Retained Earnings all in good form using proper headings for each statement.

Coopertown Suppliers, Inc.
cash $12,950
accounts receivable $28,150
supplies $4,400
prepaid insurance $9,500
land $100,000
buildings $360,000
equipment $260,000
accumulated depreciation - equipment $269,900
accounts payable $33,300
salaries payable $3,300
common stock $1,500
retained earnings $427,600
dividends $25,000
service fees $475,000
rent revenue $5,000
salaries expense $340,600
depreciation expense $25,100
supplies expense $10,950
insurance expense $3,000
miscellaneous selling and admin expense $30,850
utilities expense $5,100
Total $1,215,600 $1,215,600

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