Question

O Preparing financial statements from an adjusted trial balance. ta-50 min] May 31, 2012, follows P3-37A year en PARTY PIANO TUNING SERVICE Adjusted Trial Balanoe May 31, 2012 12,600 0,800 1,900 25,900 s 12.500 Accounts payable Linearned service revenoe Salary payabe Nose payable Lindros, capital Lindros, drawing Service tevenne 14,000 13,600 Salary espens Calities expense lnsurance expene Supplies expense Toca 9,600 3,900 3,700 1. Prepare Party's 2012 income statement 2 Prepare the statement of owner's equity for the year 3. Prepare the year-end halance sheet Which financial statement reports Party's resalts of operations? Were the 2012 operations successful? Cite specifics from the financial statements to support your evaluation. Which statement reports the company's financial position?

Answer 1

1) Income Statement:
	Amount $
Service rev.	65000
Less: Expenses:
Depreciation	5600
salary	9600
Utilities	3900
Insurance	3700
Supplies	1900
Total Expenses	24700
Net Income	40300
2) Statement of Owner's equity:
	Amount $
Lindeos, capital	13600
Less: Drawings	-38000
Add:Net Income	40300
Closing Capital	15900
3) Balance Sheet:
Assets	Amount $
Cash	12600
AR	10800
Supplies	1900
Current Assets	25300
Equipment	25900
Less: Acc. Dep - Eq.	-12500
Total Assets	38700
Liabilities	Amount $
AP	3300
Unearned ser. Rev.	4700
Salary payable	800
Note payable	14000
Current liabilities	22800
Lindeos, Capital	15900
Total Liabilities	38700
4) Income Statement reports Parry's results of operations.
yes the operations were successful as Net Income is positive at $ 40300.
5) Balance Sheet reports the company's financial position.