Question

The following is the adjusted trial balance for Nadia Company. Nadia Company Adjusted Trial Balance December 31 Account No. Debit Balances Credit Balances Cash 11 5,130 Accounts Receivable 12 3,300 Prepaid Expenses 13 420 Equipment 18 12,400 Accumulated Depreciation 19 2,200 Accounts Payable 21 700 Notes Payable (due on June 30) 22 3,070 Nadia Porter, Capital 31 13,000 Nadia Porter, Drawing 32 700 Fees Earned 41 10,930 Wages Expense 51 2,450 Rent Expense 52 1,900 Utilities Expense 53 1,475 Depreciation Expense 54 1,150 Miscellaneous Expense 59 975 Totals 29,900 29,900 Assume that the capital account started with a beginning balance of $10,000 and that the owner made an additional investment of $3,000 during the period. Prepare an Income Statement. Nadia Company Income Statement For the Year Ended December 31 Fees earned $ Expenses: Wages expense $ Rent expense Utilities expense Depreciation expense Miscellaneous expense Total expenses Net income $ Prepare a Statement of Owner's Equity. Nadia Company Statement of Owner's Equity For the Year Ended December 31 $ $ $ Prepare a Balance Sheet. Nadia Company Balance Sheet December 31 Assets Current assets $ Total current assets $ Property, plant, and equipment $ Total property, plant, and equipment $ Total assets $ Liabilities Current liabilities $ Total liabilities $ Owner's Equity $ Total liabilities and owner's equity $

Answer 1

Answer:

Net Income = $2,980

Statement of owner's equity = $15,280

Total Assets = $19,050

Total Liabilities = $3,770

Explanation:

Requirement A) Income Statement

                                 Nadia Company

                               Income Statement

                For the Year Ended December 31, 20X9

Revenues:                                        $                               $

Fees Earned                                                                 10,930

Expenses:

Wages expense                           2,450

Rent expense                               1,900

Utilities expense                           1,475

Depreciation Expense                  1,150

Miscellaneous Expense                  975

Total Expenses                                                             (7,950)

Net Income                                                                    2,980

Nadia company's total revenue exceeds the total expenses, therefore, the company earns a net income of $2,980.

Requirement B) Statement of owner's equity

                                        Nadia Company

                                Statement of Owner's Equity

                      For the Year Ended December 31, 20X9

           Particulars                                               $

Beginning Capital                                           10,000

Add: Additional investment (Capital)              3,000

Add: Net income for the year                          2,980

                                                                        15,980

Less: Drawings                                                   700

Capital, December 31 (Ending Capital)          15,280

The amount of $15,280 is the total owner's equity for the company. The company will this amount in the balance sheet as well.

Requirement C) Balance Sheet

                                        Nadia Company

                                         Balance Sheet

                                  As At December 31, 20X9

Particulars                                         $                               $

                              Assets

Current Assets

Cash                                                5,130

Accounts Receivable                     3,300

Prepaid Expenses                            420

Total Current Assets                                                      8,850

Property, Plant, and Equipment

Equipment                                       12,400

Less: Accumulated Depreciation  (2,200)

Total Property, Plant, and Equipment                         10,200

Total Assets                                                                    19,050

           Liabilities & Owner's Equity

                          Liabilities

Current Liabilities

Accounts Payable                               700

Notes Payable (Short-term)             3,070                              

Total Liabilities                                                                 3,770

                      Owner's Equity

Owner's Equity (From requirement B)                          15,280

Total liabilities and owner's equity                              19,050

Therefore, Total Assets = Total Liabilities + Owner's Equity