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Revenue:
Entries Debit ($)
Mowing revenue Earned ………. $340,000
Expenses:
Net-Income $27,800
Affordable Lawn Care inc.
Statement of Retained Earning
Retained Earnings:
Assets
Cash $117,050
Supplies 2150
Trucks $300,000
24,000 16,000
Stockholder’s Equity
Capital stock Retained Earning $40,000
(2)
Income Summary 312,200
31
Insurance 4,800
Expense
Office Rent 72,000
Expense
Supplies Expense 10,400
Salary Expense 120,000
Depreciation 60,000
Expense: Trucks
Depreciation 8,000
Expense: Mowing
Equip.
Repair & 6,000
Maintenance
Expense
Fuel Expense 3,000
Miscellaneous 10,000
Expense
Interest Expense 6,000
Income Taxes 12,000
Expense
To close all expense
accounts.
(3)
Income Summary 27,800
31
Retained 27,800
Earnings
To transfer net income
earned in Current Year to
the
Retained Earnings account
($340,000 - $300,200 =
$27,800).
(4)
Retained Earnings 10,000
31
Dividends 10,000
To transfer dividends
declared in Current Year to
the
Retained Earnings account.
AFFORDABLE LAWN CARE, INC.
After-Closing Trial Balance
December 31, Current Year
Cash $ 117,050
Accounts receivable 9,600
Unexpired insurance 16,000
Prepaid rent 6,000
Supplies 2,150
Trucks 300,000
Accumulated $ 240,000
depreciation: trucks
Mowing equipment 40,000
Accumulated 24,000
depreciation: mowing
equipment
Accounts payable 3,000
Notes payable 100,000
Salaries payable 1,800
Interest payable 300
Income taxes payable 2,100
Unearned mowing 1,800
revenue
Capital stock 40,000
Retained earnings 77,800
Totals $ 490,800 $ 490,800