Reference no: EM132545521
On September 30, 2019, the Religare post-closing trial balance was as follows.
The company adjusts its accounts monthly.
Account Debit Credit Cash 17,500
Accounts Receivable 14,200
Supplies 3,800
Equipment 17,900
Accumulated Depreciation - Equipment 4,550
Accounts Payable 4,700
Salaries Payable 1,800
Unearned Revenue 850
Common Shares 9,100
Retained Earnings 32,400
$53,400
During October, the following transactions were completed:
- October 8 Paid $2,300 to employees for salaries due, of which $1,800 is for September salaries payable and $500 for October October 11 Issued common shares for $4,800 October 13 Received $11,500 cash from customers in payment of accounts October 15 Received $12,200 cash for services performed in October October 19 Purchased supplies on account, $675 October 20 Paid creditors $3,100 of accounts payable due October 21 Paid October rent, $550 October 22 Paid salaries, $2,150 October 23 Performed services on account, $3,200 October 25 Paid a cash dividend, $700 October 30 Received $1,350 from customers for services to be provided in the future
Adjustment data for the month:
1. Accrued salaries payable are $1,200
2. Unearned revenue of $750 was earned during the month
3. Income tax payable is estimated to be $550
Required:
Question 1: In good format, and making whatever assumption you feel appropriate, prepare accrual-based Income Statement and Statement of Financial Position (Balance Sheet) for the month ending October 2019.