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Problem 3

The document shows the trial balance, adjustments, balance sheet, income statement, and closing entries for Guitar Doc. Key details include: - Service income of $400,000 and expenses of $40,000 for supplies, $210,000 for salaries, and $10,000 for bad debts, resulting in net income of $140,000. - Assets include $70,000 cash, $130,000 accounts receivable, $20,000 prepaid supplies. Liabilities are $30,000 salaries payable. Equity is owner Ms. Yama's $180,000 capital. - Closing entries transfer income and expenses to equity, resulting in Ms. Yama

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Omelkhair Yahya
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506 views7 pages

Problem 3

The document shows the trial balance, adjustments, balance sheet, income statement, and closing entries for Guitar Doc. Key details include: - Service income of $400,000 and expenses of $40,000 for supplies, $210,000 for salaries, and $10,000 for bad debts, resulting in net income of $140,000. - Assets include $70,000 cash, $130,000 accounts receivable, $20,000 prepaid supplies. Liabilities are $30,000 salaries payable. Equity is owner Ms. Yama's $180,000 capital. - Closing entries transfer income and expenses to equity, resulting in Ms. Yama

Uploaded by

Omelkhair Yahya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Accounts Title dr cr Cash Accounts Receivable

Cash 100,000 100,000 60,000 400,000 270,000


Ms Yama, Capital 100,000 270,000 60,000 130,000
180,000
supplies expense 60,000 370,000 300,000
cash 60,000 70,000

Accounts Receivable 400,000


Service Income 400,000

Cash 270,000
Accounts Receivable 270,000

Ms Yama, Drawing 60,000


Cash 60,000

Salaries Expense 180,000


Cash 180,000
Ms Yama, Capital Ms Yama, Drawing Service Income Supplies Expense Salaries Expense
100,000 60,000 400,000 60,000 180,000
100,000 60,000 400,000 60,000 180,000
Salaries Expense
Accounts Title Unadjusted Trial Balance Adjustments Adjusted Trial Balance
Cash 70,000 70,000
Account Receivable 130,000 130,000
Ms Yama, Capital 100,000
Ms Yama, Drawing 60,000 60,000
Service Income 400,000
Supplies Expense 60,000 20,000 40,000
Salaries expense 180,000 30,000 210,000
500,000 500000
adjustments:
Bad debt Expense 10,000 10,000
Allowance for Bad debts 10,000
Prepaid Supplies 20,000 20,000
Salaries Payable 30,000
60000 60000 540,000
Adjusted Trial Balance Balance Sheet Income Statement Closing Entries Post Closing-Trial Balance
70,000 70,000
130,000 130,000
100,000 100,000 60,000 140,000
60,000 60,000
400,000 400,000 400,000
40,000 40,000
210,000 210,000

10,000 10,000
10,000 10,000 10,000
20,000 20,000
30,000 30,000
540000 280,000 140000 260,000 400000 460,000 460,000
140,000 140,000
280000 400,000 400000
Service Income 400,000 Ms Yama, Capital
Supplies Expense 40,000 60,000 100,000
Salaries expense 210,000 140,000
Bad debt Expense 10,000 60,000 240,000
Income Summary(Squeeze) 140,000 180,000
To close the Income and Expense Account to Income Summary

Ms Yama, Capital 60,000


Ms Yama, Drawing 60,000

Income Summary 140,000


Ms Yama, Capital 140,000

Post Closing Trial Balance

Ms Yama, Capital 100,000


Add: Net Income 140,000
Less: Ms Yama, Drawing -60,000
Ms Yama, Capital, Ending 180,000

Cash 70,000
Account Receivable 130,000
Allowance for Bad debts 10,000
Prepaid Supplies 20,000
Salaries Payable 30,000
Ms Yama, Capital 180,000
Total 220,000 220000

Guitar Doc
Statement of Financial Position
As of december 31, 2021
Assets
Cash 70,000
Account Receivable 130,000
Allowance for Bad debts -10,000
Prepaid Supplies 20,000
Total Assets 210,000

Liabilities and Equity

Liability
Salaries Payable 30,000
Total Liability 30,000

Equity
Ms Yama, Capital End 180,000
Total Equity 180,000

Total Liabilities and Equity 210,000

Guitar Doc
Statement of Financial Operation
For The Year ended December 31, 2021

Income
Service Income 400,000

Expenses
Supplies Expense 40,000
Salaries expense 210,000
Bad debt Expense 10,000
Total expenses 260,000

Profit for the Period 140,000

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