50.1K

Verified Solution

Link Copied!

Problem 5.3A (Algo) Preparing financial statements from the worksheet. LO 5-4 The completed worksheet for Chavarria Corporation as of December 31, 20x1, after the company had completed the first month of operation, appears below. CHAVAARTA CORPORATION Worksheet Month Ended December 31, 20x1 Adjusted Trial Trial Balance Adjustments Balance Income Statent Balance Sheet Account Name Credit Debit Debit Credit Debit Credit Debit Debit Credit Cash Credit 76,00 76,300 76,30 Accounts receivable 11,100 Supplies 11 lee 11,100 8,300 5,100 3,200 Prepaid advertising 3,20 9,000 1,500 7,5ea 7,500 Equipment 107,500 107.500 187, see Accumulated depreciation Equipment Accounts payable 2.150 2,150 2,15e Isabel Chavarria, Capital 11,100 11,100 11,1ee Isabel Chavarria, Drawing 187.100 107.10 107, 100 6, Jee 6,30 Fees income 6,3 117, 100 Supplies expense 117, lee 117,100 5.100 5.180 5,100 Advertising expense 1,50 1,5 Depreciation expense-Equipment 1,500 Salaries expense 2,15e 2.150 2.150 15.00 Utilities expense 15.00 15,90 be Totals 235,1802.15.100.57.750 217,458 237,45 25,550 117,100 211,900 120,35a Net income 91.55 91.550 127.200 117, 180 211,900 211,900 Required: 1. Prepare an income statement 2. Prepare a statement of owner's equity. The owner made no additional Investments during the month 3. Prepare a balance sheet Analyze: if the adjustment to Prepaid Advertising had been $3.000 instead of $1500, what net income would have resulted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Analyze Prepare an income statement. CHAVARRIA CORPORATION Income Statement Month Ended December 31, 20X1 Revenue Expenses Total expenses Required 2 > Complete this question by enterings your answers in the tabs below. Required 1 Required 2 Required 3 Analyze Prepare a statement of owner's equity. The owner made no additional investments during the month. CHAVARRIA CORPORATION Statement of Owner's Equity Month Ended December 31, 20X1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Analyze Prepare a balance sheet. CHAVARRIA CORPORATION Balance Sheet December 31, 20X1 Assets Total Assets Liabilities and Owner's Equity Liabilities Owner's equity Total Liabilities and Owner's Equity Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Analyze If the adjustment to Prepaid Advertising had been $3,000 instead of $1,500, what net income would have resulted? Net income

Answer & Explanation Solved by verified expert

See Answer