90.2K

Verified Solution

Link Copied!

Demo Consulting is a consulting firm owned and operated by Jesse Flatt. The following end-of-period spreadsheet was prepared for the year ended August 31, 20Y9:

	Demo Consulting
	End-of-Period Spreadsheet
	For the Year Ended August 31, 20Y9
	Unadjusted						Adjusted
	Trial Balance		Adjustments				Trial Balance
Account Title	Dr.	Cr.		Dr.		Cr.	Dr.	Cr.
Cash	9,780						9,780
Accounts Receivable	23,280						23,280
Supplies	2,470					2,070	400
Land	20,250						20,250
Office Equipment	19,090						19,090
Accumulated Depreciation		2,580				1,230		3,810
Accounts Payable		6,290						6,290
Salaries Payable						300		300
Common Stock		7,800						7,800
Retained Earnings		15,950						15,950
Dividends	3,030						3,030
Fees Earned		64,600						64,600
Salary Expense	17,460			300			17,760
Supplies Expense				2,070			2,070
Depreciation Expense				1,230			1,230
Miscellaneous Expense	1,860						1,860
	97,220	97,220		3,600		3,600	98,750	98,750

Based on the preceding spreadsheet, prepare an income statement for Demo Consulting.

Demo Consulting
Income Statement
For the Year Ended August 31, 20Y9
Fees earned		$fill in the blank 05a032052ff8f9e_2
Expenses:
Salary expense	$fill in the blank 05a032052ff8f9e_4
Supplies expense	fill in the blank 05a032052ff8f9e_6
Depreciation expense	fill in the blank 05a032052ff8f9e_8
Miscellaneous expense	fill in the blank 05a032052ff8f9e_10
Total expenses		fill in the blank 05a032052ff8f9e_11
Net income		$fill in the blank 05a032052ff8f9e_13

Based on the preceding spreadsheet, prepare a statement of stockholders equity for Demo Consulting. During the year ended August 31, 20Y9, $3,100 of additional common stock was issued. If an amount box does not require an entry, leave it blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.

Demo Consulting
Statement of Stockholders Equity
For the Year Ended August 31, 20Y9
	Common Stock	Retained Earnings	Total
Balances, September 1, 20Y8	$fill in the blank 1960b2fccf9c00a_2	$fill in the blank 1960b2fccf9c00a_3	$fill in the blank 1960b2fccf9c00a_4
Issued common stock	fill in the blank 1960b2fccf9c00a_6	fill in the blank 1960b2fccf9c00a_7	fill in the blank 1960b2fccf9c00a_8
Net income	fill in the blank 1960b2fccf9c00a_10	fill in the blank 1960b2fccf9c00a_11	fill in the blank 1960b2fccf9c00a_12
Dividends	fill in the blank 1960b2fccf9c00a_14	fill in the blank 1960b2fccf9c00a_15	fill in the blank 1960b2fccf9c00a_16
Balances, August 31, 20Y9	$fill in the blank 1960b2fccf9c00a_18	$fill in the blank 1960b2fccf9c00a_19	$fill in the blank 1960b2fccf9c00a_20

Based on the preceding spreadsheet, prepare a balance sheet for Demo Consulting.

Demo Consulting
Balance Sheet
August 31, 20Y9
Assets
Current assets:
Cash		$fill in the blank 1f9697fb3fe1ffe_2
Accounts receivable		fill in the blank 1f9697fb3fe1ffe_4
Supplies		fill in the blank 1f9697fb3fe1ffe_6
Total current assets			$fill in the blank 1f9697fb3fe1ffe_7
Property, plant, and equipment:
Land		$fill in the blank 1f9697fb3fe1ffe_9
Office equipment	$fill in the blank 1f9697fb3fe1ffe_11
Accumulated depreciation	fill in the blank 1f9697fb3fe1ffe_13
Book value-office equipment		fill in the blank 1f9697fb3fe1ffe_15
Total property, plant, and equipment			fill in the blank 1f9697fb3fe1ffe_16
Total assets			$fill in the blank 1f9697fb3fe1ffe_17
Liabilities
Current liabilities:
Accounts payable		$fill in the blank 1f9697fb3fe1ffe_19
Salaries payable		fill in the blank 1f9697fb3fe1ffe_21
Total liabilities			$fill in the blank 1f9697fb3fe1ffe_22
Stockholders' Equity
Common stock		$fill in the blank 1f9697fb3fe1ffe_24
Retained earnings		fill in the blank 1f9697fb3fe1ffe_26
Total stockholders' equity			fill in the blank 1f9697fb3fe1ffe_27
Total liabilities and stockholders' equity			$fill in the blank 1f9697fb3fe1ffe_28

Answer & Explanation Solved by verified expert

See Answer