Lecture 13: Preparing Financial Statement Rabeya Akter Lecturer, GBS , Green University Johnson Graphics Company was organized on January 1, 2017, by Cameron Johnson. At the end of the first 6 months of operations, the trial balance contained the following accounts JG Company Adjusting Entries On 30 June , 2017 No 1 2 3 4 5 6 Particulars Ref Debit (Amount) Supplies Supplies Expense 1500 Interest Expense Interest Payable (20,000 X 9% )X 5/12 750 Prepaid Insurance Insurance Expense (2700 /12 ) X 8 1800 Service Revenue Unearned Service Revenue 1300 Accounts Receivable Service Revenue 2000 Depreciation Expense Accumulated Depreciation on Equipment (2250 /2) 1125 Credit (Amount) 1500 750 1800 1300 2000 1125 JG Company adjusted Trial Balance 30 June , 2017 Accounts Debit ( $) Accounts Credit ($) Cash 8,600 Accumulated Depreciation 1125 Accounts Receivable (14000+2000) 16000 Notes Payable 20,000 Supplies 1500 Interest Payable 750 Supplies Expense (3700-1500) 2200 Accounts Payable 9000 Prepaid Insurance 1800 Owners CAPITAL 22000 Insurance Expense (2700-1800) 900 Sales Revenue 52100 Equipment 45000 Service Revenue (6000-1300+2000) 6700 Salaries and Wages Expense 30000 Unearned Service Revenue 1300 Advertising Expense 1900 Rent Expense 1500 Utilities Expense 1700 Depreciation Expense 1125 Interest Expense 750 Total 112,975 Income Statement For SIX month ended on 30 June , 2017 Particulars Amount Sales Revenue 52100 Service Revenue 6700 Total Revenue Amounts 58,800 Less : expense Salaries and Wages Expense 30000 Supplies Expense 2200 Advertising Expense 1900 Rent Expense 1500 Utilities Expense 1700 Depreciation Expense 1125 Interest Expense 750 Insurance Expense Total expense 900 Net income 40075 18,725 JG Company Owners Equity Statement For SIX month ended on 30 June , 2017 Particulars Amount ($) Owner’s Capital , January 1 Owners Investment 0 22,000 Add: Net Income 18725 Owner’s Capital , June 30 40,725 JG Company Financial Statement (Balance Sheet ) For SIX month ended on 30 June , 2017 Particulars Assets Cash Accounts Receivable Supplies Prepaid insurance Equipment Less: Accumulated Depreciation Amount($) Amount ($) 8600 16000 1500 1800 45000 1125 43875 Total Asset ………………….. (i) Liabilities Notes Payable Accounts Payable Unearned Service Revenue Interest Payable Total Liabilities ………………….. Owners Equity Owners Capital Total Liabilities and Owners Equity ……..(ii) 71,775 20,000 9000 1300 750 31050 40725 71,775 Interactive Session 5 min – 7 min