Prepare the income statement for the business

Assignment Help Accounting Basics

Reference no: EM13949768

Question:

The unadjusted trial balance of H's Cars Rentals is shown below (Ignore GST):

H'S CAR RENTALS Unadjusted Trial Balance as at 30 June 2016

Account	Debit	Credit
Cash at bank	$8140
Accounts receivable	14,360
Office supplies	640
Rental cars	93 600
Accumulated depreciation - rental cars		$39,400
Office equipment	6 200
Accumulated depreciation - office
equipment		3,500
Accounts payable		14,040
Unearned Rental fees		2,260
H. Savva, Capital		66,600
H. Savva, Drawings	20 600
Rental revenue		98,700
Insurance expense	8,180
Wages expense	50,620
Advertising expense	3,880
Maintenance expense	7,600
Fuel and oil expense	10,680
	$224 500	$224,500

Additional information

(a) Petrol purchased on credit for $680 and used during the last week in June has not been paid for or recorded.

(b) A physical count showed office supplies totalling $340 were still on hand at 30 June.

(d) The balance in the Advertising Expense account includes $600 prepayment for an advertising campaign beginning in July.

(e) The balance in the Unearned Rental Fees account includes $1800 received in May for rental services completed in June.

(f) The June insurance premium of $700 is overdue and has not been recorded as the invoice has not been received.

(g) Wages earned but not paid amounted to $1150

Required

A. Prepare a 10-column worksheet for the year ended 30 June 2016.

B. Prepare the income statement for the business for the year ended 30 June 2016.

C. Prepare a statement of changes in equity for the year ended 30 June 2016.

D. Prepare a balance sheet as at 30 June 2016.

Reference no: EM13949768

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