Financial Accounting

TOUCHTONE TALENT AGENCY

JOURNAL ENTRIES
Particulars Debit $ Credit $
Depreciation exp A/c 250  
  250
Accumulated depreciation A/c

Unearned income A/c 2500  

  2500
revenue earned A/c
Salary A/c 1360  
  1360
Salary P/A A/c
Rent A/c 600  
  600
Prepaid rent A/c
Income R/A A/c 3000  
  3000
revenue earned A/c
Supplies expenses A/c 370  
  370
Supplies A/c
Insurance A/c 125  
  125
Unexpired insurance A/c
Interest Expenses A/c 45  
  45
Interest P/A A/c
Income tax expenses A/c 325  
  325
Income tax payable A/c

UNIVERSITY OF MANAGEMENT&TECHNOLOGY
 Financial Accounting

TOUCHTONE TALENT AGENCY

Adjusted trial balance

December 31, 2005

Particulars Debit $ Credit $

Cash 14950  
Fees R/A (35300+3000) 38300  
Prepaid rent (1200-600) 600  
Unexpired insurance (375-125) 250  
Office supplies (900-370) 530  
Office equipment 15000  
Acc-Depreciation (12000+250)   12250
Accounts P/A   1500
Notes P/A (6000+45)   6045
Income tax P/A (3200+325)   3525
Unearned office fees (8000-2500)   5500
Capital stock   20000
Retained earning   10800
Dividend 800  
Agency fees earned(46500+2500+3000)   52000
Telephone expenses 480  
Office supplies exp (1130+370) 1500  
Dep. exp (2750+250) 3000  
Rent exp( 6100+600) 6700  
Insurance (1175+125) 1300  
Salaries exp( 24640+1360) 26000  
Income tax exp (3200+325) 3525  
Interest exp 45  
Salaries P/A   1360
Total 112980 112980

UNIVERSITY OF MANAGEMENT&TECHNOLOGY
Financial Accounting

TOUCHTONE TALENT AGENCY

INCOME STATEMENT

FOR THE YEAR ENDED December 31, 2005

Particulars $ $
Agency fees earned   52000
Less    
Operative Expenses    
Telephone exp 480  
Office supply exp 1500  
Depreciation exp 3000  
Rent exp 6700  
Insurance 1300  
Salaries 26000  
Interest expenses 45  
Total operative expenses   -39025
Operative income   12975
Income tax expense   -3525
Net income   9450

STATEMENT OF CHANGE IN EQUITY

Opening Balance b/d 10800
Net income 9450
Total income 20250
Less Dividend 800
Retained Earning 19450

UNIVERSITY OF MANAGEMENT&TECHNOLOGY
Financial Accounting

TOUCHTONE TALENT AGENCY

Liabilities Rs. Rs.

Equities and liabilities    
capital reserves   20000
Un appropriated profit   19450
Current liabilities    
Account P/A   1500
Notes P/A   6045
Income tax P/A   3525
un earned fees   5500
Salaries P/A   1360
Total Liabilities   57380
Assets    
Non-current Assets    
Equipment 15000  
Depreciation -12250 2750
Current Assets    
Cash   14950
Fees R/A   38300
Prepaid Rent   600
Unexpired Insurance   250
Office supplies   530
Total Assets   57380

UNIVERSITY OF MANAGEMENT&TECHNOLOGY