Question

Prepare the Income Statement from the Adjusted Trial Balance. Within each section of the statement, use the drop-down menus to enter the accounts and select the account balances. SMART TOUCH LEARNING Adjusted Trial Balance December 31, 2016 Balance Account Title Debit Credit Cash 14,000 Accounts Receivable 7,700 Office Supplies 100 Prepaid Rent 9,300 Furniture 16,300 Accumulated Depreciation--Furniture 5,600 Accounts Payable 1,800 Salaries Payable 400 Interest Payable 200 Unearned Revenue 4,600 Notes Payable 6,500 Common Stock 9,100 Retained Earnings 9,300 Dividends 23,900 Service Revenue 42,500 Depreciation Expense--Furniture 1,800 Interest Expense 200 Rent Expense 2,800 Salaries Expense 3,200 Supplies Expense 700 Total 80,000 80,000 Revenue: Expenses:

Answer 1

Answer:

Smart Touch Learning

SMART TOUCH LEARNING Income Statement December 31, 2016

Service Revenue                                          42,500

Depreciation Expense--Furniture 1,800

Interest Expense                             200

Rent Expense                               2,800

Salaries Expense                         3,200

Supplies Expense                           700

Total Expenses                                               8,700

Net Income                                                $33,800

Explanation:

a) Data and Calculations:

SMART TOUCH LEARNING Adjusted Trial Balance December 31, 2016 Balance Account Title                    Debit          Credit

Cash                                              14,000

Accounts Receivable                     7,700

Office Supplies                                  100

Prepaid Rent                                  9,300

Furniture                                       16,300

Accumulated Depreciation--Furniture             5,600

Accounts Payable                                              1,800

Salaries Payable                                                  400

Interest Payable                                                  200

Unearned Revenue                                         4,600

Notes Payable                                                 6,500

Common Stock                                                9,100

Retained Earnings                                          9,300

Dividends                                    23,900

Service Revenue                                          42,500

Depreciation Expense--Furniture 1,800

Interest Expense                             200

Rent Expense                               2,800

Salaries Expense                         3,200

Supplies Expense                           700

Total                                           80,000      80,000

b) The income statement of Smart Touch  Learning shows the difference between its revenue and expenses for a given accounting period.  It is used to determine the net income that the company has generated over a particular period.