Hipster Optical Trial Balance May 31, 2017 Acct. No Account Title Debit Credit 101 Cash $ 17,700 106 Accounts receivable 7,680 124 Office supplies 5,600 128 Prepaid insurance 9,020 163 Office equipment 24,800 201 Accounts payable $ 1,520 230 Unearned service revenue 7,000 301 Peeta Black, capital 55,500 302 Peeta...

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Accounting

Hipster Optical
Trial Balance
May 31, 2017
Acct.No Account Title Debit Credit
101   Cash $ 17,700
106   Accounts receivable 7,680
124   Office supplies 5,600
128   Prepaid insurance 9,020
163   Office equipment 24,800
201   Accounts payable $ 1,520
230   Unearned service revenue 7,000
301   Peeta Black, capital 55,500
302   Peeta Black, withdrawals 1,400
403   Services revenue 21,200
623   Wages expense 14,200
640   Rent expense 3,500
690   Utilities expense 1,320

  Totals $ 85,220 $ 85,220

Required:
Using the trial balance provided above, prepare an income statementand statement of changes in equity for the first month ended May31, 2017, and a balance sheet at May 31, 2017.




Analysis Component:
Upon review of the trial balance, the balance at May 31, 2017 forutilities expense is $1,320. Create a journal entry that might havecreated this balance. Create a second entry when the May utilitybill is to be paid in the next month. (If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field.)

The balance in the utilities expense account could have arisen onaccount of one of the following entries.

Answer & Explanation Solved by verified expert

4.3 Ratings (530 Votes)

Hipster Optical Income Statement For the Month Ended May 31 2017 Services revenue 21200 Less Expenses Wages expense 14200 Rent expense 3500 Utilities expense 1320 Total expense 19020 Net See Answer

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Acct.No	Account Title		Debit		Credit
101	Cash	$	17,700
106	Accounts receivable		7,680
124	Office supplies		5,600
128	Prepaid insurance		9,020
163	Office equipment		24,800
201	Accounts payable			$	1,520
230	Unearned service revenue				7,000
301	Peeta Black, capital				55,500
302	Peeta Black, withdrawals		1,400
403	Services revenue				21,200
623	Wages expense		14,200
640	Rent expense		3,500
690	Utilities expense		1,320

	Totals	$	85,220	$	85,220