Question

Credit (5) 5600 (1.) Unadjusted Trial Balance columns for for Thairo Company, from January 2019, owned by Mr. Thairen are as Debit (S) Particulars 5300 Cash 10800 Accounts receivables 1500 Supplies 2000 Prepaid Insurance 27000 Equipment Accumulated depreciation Equipment Notes Payables Accounts Payables Salaries & Wages Payables Interest Payables Owner's Capital 7000 Owner's Drawings Service Revenue 8400 Advertising Expense Supplies Expense 5600 Depreciation Expense Insurance Expense 3500 28000 Salaries & Wages expense Interest Expense 600 Total 103700 15000 6100 2400 600 13000 61000 103700 Unadjusted data for the Period: a) Accrued salaries are $ 700 b) Depreciation for one month is $ 250 Using the above mentioned data prepare: i) Statement of Financial Position il) Statement of Financial Performance 1051 1051

Answer 1

$ 61,000 8,400 THAIRO COMPANY Statement of Financial Performance Month Ended January 31, 2019 Revenue Service revenue Expenses Advertising expense $ Supplies expense 4,000 Depreciation 5,850 Insurance expense $ 3,500 Salaries and wages expense $ 28,700 Interest expense $ 600 Total expenses Net Income $ 51,050 9,950

THAIRO COMPANY Statement of Financial Position As on January 31, 2019 ASSETS Current assets Cash $ 5,300 Accounts receivable $ 10,800 Supplies $ 1,500 Prepaid insurance $ 2,000 $ 19,600 Non-current assets Equipment Less: Accumulated depreciation $ $ 27,000 (5,850) $ 21,150 Total assets $ 40,750 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Current liabilities Accounts payable Salaries and wages payable Interest payable $ $ 6,100 3,100 600 $ 9,800 Long-term liabilities Notes payable $ 15,000 Owner's capital Owners' capital Add: Net income Less: Drawings $ $ $ 13,000 9,950 (7,000) $ 15,950 Total liabilities and stockholders' equity $ 40,750

Debit Credit Particulars a) Accrued salaries Salaries and wages expense Salaries and wages payable (being salaries accrued not paid) $ 700 $ 700 Accrued expenses are expenses that are in incurred but not paid. Salaries and wages payable = $2400+$ 700 = $3100 Salaries and wages expense = $28000+$700 = $28700 $ 250 b) Depreciation Depreciation Accumulated depreciation (being depreciation expense for the month) $ 250 Depreciation = $5600+$250 = $5850 Accumulated depreciation = $5600+$250 = $5850