Question

The adjusted trial balance for the year of Schneider Corporation at October 31, 2018, follows !!! (Click the icon to view the adjusted trial balance.) Read the requirements Begin by preparing Schneider's 2018 Income statement (Check your spelling carefully and do not abbreviate Use only the account names pros Schneider Corporation Income Statement Year Ended October 31, 2018 Revenue Expenses Income before tax Income tax expense Net income

Income Statement and Balance Sheet

Answer 1

91,950 Schneider Corporation Income Statement Year ended October 31, 2018 Revenue: Service revenue $ Expenses: Depreciation expense - equipment $ 1,100 Salary expense 40,500 Rent expense 10,300 Interest expense 3,200 Insurance expense 4,200 Supplies expense 2,700 $ Income before tax $ Income tax expense $ Net Income $ 62,000 29,950 6,600 23,350

Schneider Corporation Statement of Retained Earnings Year ended October 31, 2018 Retained Earnings 4,000 $ 23,350 (3,000) 24,350 Beginning Balance Add: Net Income Less: Dividends Ending Balance

• Retained earnings in adjusted trial balance is treated as its opening balance, assuming no other movement in retained earnings account.

Assets Current Assets Cash Accounts receivable Supplies Prepaid rent Schneider Corporation Balance Sheet October 31, 2018 Liabilities Accounts payable $ 15,000 Interest payable $ 19,600 Unearned service revenue $ 2,600 Income tax payable $ 2,100 Note payable Total liabilities Stockholders' Equity Common Stock 37,300 Retained Earnings (4,100) $ 33,200 Total stockholders' equity $ $ $ $ $ $ 8,900 1,050 400 2,800 19,000 32,150 Fixed Assets Equipment Less: Accumulated depreciation - equipment $ $ $ $ $ 16,000 24,350 40,350 Total assets $ 72,500 Total liabilities and stockholders' equity $ 72,500

• Supplies are stock of consumables. They are written off as supplies expense once they are consumed.
• Unearned service revenue is payment received in advance from customers.