Question

Using the information presented below, prepare an income statement and the balance sheet from the adjusted trial balance of Gin Yang, Culinary Academy. Gin Yang, Culinary Academy Adjusted Trial Balance December 31 Cash $ 5,200 Accounts receivable 1,100 Prepaid insurance 1,200 Office supplies 320 Office equipment 3,000 Accumulated depreciation–office equipment $ 1,800 Buildings 75,000 Accumulated depreciation–buildings 26,000 Land 135,000 Salaries Payable 1,285 Property taxes payable 3,200 Interest payable 3,850 Unearned tuition revenue 3,300 Notes payable 85,000 Gin Yang, Capital Stock 35,000 Gin Yang, Dividends 5,000 Tuition revenue 92,855 Salaries expense 13,000 Utilities expense 1,400 Property taxes expense 1,975 Insurance expense 1,300 Office supplies expense 325 Depreciation expense–office equipment 1,120 Depreciation expense–buildings 4,850 Interest expense 2,500 $252,290 ________ $252,290 Totals Required: Use a spreadsheet to prepare the: Income Statement Balance Sheet

Answer 1

Answer:

Explanation:

In the classified balance sheet, we summarize the asset and liabilities into various types

Like assets are divided into fixed assets, current assets, and intangible assets.

Likewise, liabilities are also divided into current liabilities, long term liabilities

In every balance sheet, the accounting equation is used that means

Total assets = Total liabilities + Shareholder equity

And, the ending balance of the common stock = Beginning balance of common stock + net income - dividend paid

= $35,000 + $66,385 - $5,000

= $96,385

The preparation of the income statement and the classified balance sheet for Gin Yang, Culinary Academy are presented in the spreadsheet. Kindly find the attachment below: