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Chapter 4: Q19E (page 223)

The unadjusted trial balance of Data Solution at November 30, 2018, follows: DATA SOLUTION Unadjusted Trial Balance November 30, 2018 Account Title Prepaid Rent Cash Debit Credit Accounts Receivable Office Supplies Equipment Accumulated Depreciation—Equipment Accounts Payable Salaries Payable Common Stock Dividends Service Revenue Depreciation Expense—Equipment Salaries Expense Rent Expense Utilities Expense Supplies Expense Balance \( 4,400 \) 48,300 \( 48,300 5,100 \) 1,500 30,200 32,900 8,800 2,900 2,100 3,100 1,800 3,100 700 Additional information at November 30, 2018: a. Accrued Service Revenue, \(800. b. Depreciation, \)350. c. Accrued Salaries Expense, \(650. d. Prepaid Rent expired, \)700. e. Office Supplies used, $550. Requirements 1. Complete Data Solution’s worksheet for the month ended November 30, 2018. 2. How much was net income for November?

Short Answer

Expert verified

(1) Worksheet are as follows:

Prepaid

Rent

1,800

700

1,100

1,100

Office

Supplies

3,100

550

2,550

2,550

Equipment

30,200

30,200

30,200

Accumulated Depreciation—Equipment

$1,500

$350

$1,850

$1,850

Accounts Payable

5,100

5,100

5,100

Salaries Payable

650

650

650

Common Stock

32,900

32,900

32,900

Dividends

2,900

2,900

2,900

Service Revenue

8,800

800

9,600

$9,600

Depreciation Expense—Equipment

350

350

$350

Salaries Expense

2,100

650

2,750

2,750

Rent

Expense

700

700

700

Utilities Expense

700

700

700

Supplies Expense

550

550

550

Total

$48,300

$48,300

$3,050

$3,050

$50,100

$50,100

$5,050

$9,600

$45,050

$40,500

Net Income

4,550

4,550

Total

$9,600

$9,600

$45,050

$45,050

(2) Net Income is $4,550.

Step by step solution

01

Explanation on Worksheet

Worksheet is a document which is prepared internally that represents the summary of data, which is used in preparation of financial statements.

02

Calculation of net Income

Net income is calculated as follows:

NetIncome=TotalRevenues-TotalExpenses=$9,600-$5,050=$4,550

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Most popular questions from this chapter

The adjusted trial balance for Green Advertising Services is presented below: Account Title Office Supplies Cash Debit Credit Accounts Receivable Building Accumulated Depreciation—Building Furniture Accumulated Depreciation—Furniture Land Salaries Payable Accounts Payable Unearned Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Supplies Expense Depreciation Expense—Building Balance \( 14,000 \) 195,200 \( 195,200 18,400 14,100 \) 36,100 19,600 7,200 10,600 30,000 31,400 16,000 18,300 49,800 8,400 28,600 2,900 1,300 13,500 15,800 6,500 47,900 Depreciation Expense—Furniture Advertising Expense Total GREEN ADVERTISING SERVICES Adjusted Trial Balance December 31, 2018 Requirements 1. Prepare the income statement for the year ending December 31, 2018. 2. Prepare the statement of retained earnings for the year ending December 31, 2018. 3. Prepare the classified balance sheet as of December 31, 2018. Use the report form

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