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O'Henry's Data Services Unadjusted Trial Balance November 30, 20XX
Cash……………………………… $9,700
Accounts receivable……………………… 7,900
Prepaid expenses………… 2,600
Furniture, fixtures, & equipment 151,300
Accumulated depreciation $15,600
Accounts payable………… 3,800
Salary payable………………
Unearned service revenue 6,700
Benjamin O'Henry, capital 137,400
Benjamin O'Henry, withdrawals 2,000
Service revenue………… 14,300
Rent expense……………
Salary expense………… 3,400
Utilities expense……… 900
Depreciation expense
Supplies expense……
Total…………………………………………. $177,800 $177,800

Revenues and expenses vary little from month to month, and November is a typical month. Your investigation reveals that the unadjusted trial balance does not include the effects of monthly revenues of $2,100 and monthly expenses totaling $2,750. If you were to buy O'Henry's Data Services, you would hire a manager who would require a monthly salary of $3,000.

2007-09-01 11:36:22 · 2 answers · asked by ekhill96 1 in Business & Finance Other - Business & Finance

2 answers

Assuming we are to prepare the income statement for the month of Nov taking into a/c the effects of omitted monthly revenues of $2,100 and monthly expenses totaling $2,750, & the mgr's salary of $3k.

Income statement for November 20xx
Service revenue 14,300
Omitted revenue 2,100
Sub-total 16,400
Operating expenses:
Salary exp 3,400
Utilities exp 900
Omitted exp 2,750
New mgr's salary 3,000
Sub-total 10,050

Income before tax 6,350

2007-09-01 17:04:49 · answer #1 · answered by Sandy 7 · 0 0

How much time do you think this would take?

Google SBA, Small Business Administration.
Many links.
There are templates to do that.

2007-09-01 11:46:41 · answer #2 · answered by ed 7 · 0 0

fedest.com, questions and answers