A Cut Above, Inc. has the following accounts with normal balances ...

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A Cut Above, Inc. has the following accounts with normal balances on its December 31, 2011 adjusted trial balance after its first month of business.
 
  Cash  400
  Accounts receivable 300
  Insurance expense 200
  Equipment 600
  Accumulated depreciation 100
  Depreciation expense 100
  Service revenue 1,000
  Wages payable 100
  Wages expense 400
  Supplies expense 100
  Common stock 1,000
  Dividends 100
 
   A. Prepare A Cut Above's income statement, statement of changes in shareholders' equity, and classified balance sheet for the month ended and at December 31, 2011.

Question 2

The ___________________ _ balance sheet shows the liabilities and owner's equity sections below the asset section.
 Fill in the blank(s) with correct word

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Answer to Question 1

A Cut Above, Inc.
Income Statement
For the Month Ended December 31, 2011
Service revenue 1,000
Expenses:
Wages Expense 400
Insurance expense 200
Depreciation expense 100
Supplies expense 100 800
Net income 200

A Cut Above, Inc.
Statement of Changes in Shareholders' Equity
For the Month Ended December 31, 2011
Beginning Common Stock  0
Common Stock Issued 1,000
Ending Common Stock 1,000

Beginning Retained Earnings  0
Net income 200
Dividends 100
Ending retained earnings 100
Total shareholders' equity 1,100

A Cut Above, Inc.
Balance Sheet
At December 31, 2011
Current assets Current liabilities
Cash  400 Wages payable  100
Accounts receivable 300
Total current assets 700 Shareholders' equity
Equipment (net of 100 Common stock 1,000
accumulated depreciation) 500 Retained earnings 100
Total shareholders' equity 1,100
Total liabilities and
Total assets 1,200 shareholders' equity 1,200

Answer to Question 2

report form

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TYSM

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