NAME : Syed Muhammad Saif Ali
ID : 6455
PROGRAM : BS-Aviation Management
COURSE : Financial Accounting
CHAPTER # 05
PROBLEM:5.1A
A) PARTY WAGON INC
INCOME STATEMENT
FOR THE YEAR ENDED, DEC 31. 2015
REVENUES
Party revenue earned
EXPENSES
Insurance expense
Office rent expense
Supplies expense
Salary expense
Depreciation Expense : van
Depreciation Ezxpense : Music and equipment
Repair and maintanance Expense
travel Expense
Miscellaneous expense
Interest expense
Income tax expense
Total expense
NET INCOME
PARTY WAGON, INC
STATEMENT OF RETAINED EARNING
FOR THE YEAR ENDED, DEC 31, 2015
Retained earning (for the bigning of the year)
Add: Income
Devidends
Retained earning(for the year ended)
PARTY WAGON, INC
STATEMENT OF FINANCIAL POSITION
31-Dec-15
ASSETS
Cash $ 15,000.00
Accounts Receivable $ 9,000.00
Supplies $ 500.00
Van $ 40,000.00
Music and equipment $ 35,000.00
Accumulated depreciation:van $ 16,000.00
Accumulated depreciation:music and equip $ 14,000.00
Unexpired Insurance $ 4,500.00
Prepaid rent $ 2,000.00
TOTAL ASSETS $ 76,000.00
B) PARTY WAGON, INC
CLOSING ENTRIES
DATE ACCOUNTS TITLES
31-Dec Income summary
Insurance expense
Office Rent expense
Supplies expense
Salaries expense
Depreciation Expense:van
Depreciation Expense:music and equipment
Maintanance Expense
Travel Expense
Miscellanaus Expense
Interest Expense
Income tax expense
31-Dec Party revenue earned
Income summary
31-Dec Retained earning
Devidends
31-Dec Income summary
Retained earning
C) The has the current Assets of $99500 from which they can pay their obligations of current Liabilities of $
The company's net income for the year is $7000 which means the company produced the profit of $7000
PROBLEM:5.2A
A) AFFORDABLE LAWN CARE, INC
INCOME STATEMENT
FOR THE YEAR ENDED, DEC 31, 2015
REVENUES
Mowing revenue earned
TOTAL
EXPENSES
Insurance expense
Office rent expense
Supplies expense
Salary expense
Deprecietion Expense:trucks
Depreciation Expense:mowing equipment
Repair and maintanance expense
Fuel expense
Miscellaneous expense
Interest expense
Income tax expense
TOTAL
Net Income
AFFORDABLE LAWN CARE, INC
STATEMENT OF RETAINED EARNING
FOR THE YEAR ENDED, DEC 31, 2015
Retained earning(for the bigning of the year)
ADD:net income
subtotal
Less:Devidends
Retained earning(for the year ended)
AFFORDABLE LAWN CARE, INC
STATEMENT OF FINANCIAL POSITION
31-Dec-15
ASSETS
Cash $ 117,050.00
Accounts receivable $ 9,600.00
Unexpired insurance $ 16,000.00
Prepaid rent $ 6,000.00
Supplies $ 2,150.00
Trucks $ 300,000.00
Accumulated depreciation:trucks $ 240,000.00
Mowing equipment $ 40,000.00
Accumulated depreciation:mowing equip $ 24,000.00
TOTAL ASSETS $ 226,800.00
B)
ER # 05
ARTY WAGON INC
COME STATEMENT
YEAR ENDED, DEC 31. 2015
$ 130,000.00
$ 1,800.00
$ 12,000.00
$ 1,200.00
$ 75,000.00
$ 8,000.00
$ 7,000.00
$ 2,000.00
$ 6,000.00
$ 3,600.00
$ 4,400.00
$ 2,000.00
$ 123,000.00
$ 7,000.00
ARTY WAGON, INC
NT OF RETAINED EARNING
YEAR ENDED, DEC 31, 2015
$ 15,000.00
$ 7,000.00
$ 22,000.00
$ 1,000.00
$ 21,000.00
ARTY WAGON, INC
NT OF FINANCIAL POSITION
31-Dec-15
LIABILITIES
Interest payable $ 200.00
Accounts payable $ 7,000.00
Notes payable $ 39,000.00
salaries payable $ 1,600.00
Unearned revenue $ 1,800.00
Income tax payable $ 400.00
TOYAL LIABILITIES $ 50,000.00
OWENERS EQUITY
Capital stock $ 5,000.00
Retained earning $ 21,000.00
TOTAL OWNERS EQUITY $ 26,000.00
TOTAL $ 76,000.00
ARTY WAGON, INC
CLOSING ENTRIES
TLES DEBIT CREDIT
mary $ 123,000.00
ense $ 1,800.00
pense $ 12,000.00
ense $ 1,200.00
nse $ 75,000.00
ense:van $ 8,000.00
ic and equipment $ 7,000.00
xpense $ 2,000.00
nse $ 6,000.00
pense $ 3,600.00
nse $ 4,400.00
pense $ 2,000.00
arned $ 130,000.00
mary $ 130,000.00
ning $ 1,000.00
s $ 1,000.00
mary $ 6,000.00
ning $ 6,000.00
obligations of current Liabilities of $48200 when they come due, it states that the company is liqyud
mpany produced the profit of $7000 in that year
CARE, INC
MENT
DEC 31, 2015
$ 340,000.00
$ 340,000.00
$ 4,800.00
$ 72,000.00
$ 10,400.00
$ 120,000.00
$ 60,000.00
$ 8,000.00
$ 6,000.00
$ 3,000.00
$ 10,000.00
$ 6,000.00
$ 12,000.00
$ 312,200.00
$ 27,800.00
CARE, INC
NED EARNING
DEC 31, 2015
60,000.00
27,800.00
87,800.00
10,000.00
77,800.00
CARE, INC
CIAL POSITION
5
LIABILITIES
Accounts payable 3,000.00
Notes payable 100,000.00
Salaries payable 1,800.00
Interest payable 300.00
Income tax payable 2,100.00
Unearned Mowing revenue 1,800.00
TOTAL LIAB 109,000.00
OWNERS EQUITY
Capital stock 40,000.00
Retained earning 77,800.00
117,800.00
TOTAL 226,800.00
