Text big ritas music company adjusted trial balance june 30...

Text: Big Rita's Music Company Adjusted Trial Balance June 30, 2018 Balance Account Title Debit Credit Cash $3,800 Accounts Receivable $39,500 Merchandise Inventory $17,300 Office Supplies $750 Furniture $39,400 Accumulated Depreciation—Furniture $8,600 Accounts Payable $13,300 Salaries Payable $900 Unearned Revenue $7,300 Notes Payable, long-term $13,000 Common Stock $12,500 Retained Earnings $13,250 Dividends $39,000

Transcript

00:01 Hello, from the given adjusted trial balance, we need to identify the revenue and the expense accounts and post the balances of these general ledger in the following format of income statement so as to get the net income for the period.

00:15 So, income statement for the year ended 30th april 2018 would be as follows.

00:27 We will write amount in dollars.

00:33 First head will be of revenue.

00:35 Under revenue, there will be loan owing revenue which will be 2350.

00:49 Thus, total revenue a will be 2350.

01:00 Next head will be for expenses.

01:06 First expense will be gas expense which will be 53.

01:14 Advertising expense which will be 35.

01:26 Depreciation expense which will be 35.

01:42 Supplies expense which will be 85.

01:51 Salaries expense which will be 420.

02:00 Therefore, total expense will be 628.

02:07 Therefore, the net income by subtracting a and b, it will be 1722.

02:19 Dividend though its expense, it need to be adjusted through retained earnings in owner's equity section of balance sheet.

02:26 Once the income statement is done and found net income for the period, then we need to show assets and liabilities account balances in balance sheet as per below.

02:42 Balance sheet as at 30th april 2018.

02:56 First head will be for assets.

03:00 Amount in dollars.

03:06 First head under assets will be current assets.

03:12 Under current assets, subhead will be cash, accounts, receivables, office, supplies, prepaid, insurance.

03:37 Cash will be 2950.

03:42 Account receivable is 575.

03:45 Office supply is 40 and prepaid insurance 240.

03:49 Therefore, total current assets are 3805.

04:02 Now next head under assets will be non -current assets.

04:06 Under non -current assets, there will be first equipment, less accumulated depreciation on equipment...