KCa 5-2 Prepare an Income Statement
Use the following Adjusted Trial Balance to prepare the Income Statement for the first month of operations of Max Energy, Inc. as of July 31, 2015. An Excel template, in which you may record your answer(s), can be found in the Student Resource Center.
Max Energy, Inc.
Adjusted Trial Balance
July 31, 2015
Cash
Accounts Receivable
Supplies
Prepaid insurance
Equipment
Accum. Depreciation - Equipment Truck
Accum. Depreciation - Truck Land Accounts Payable Notes Payable
Service Revenue
Interest Revenue
Advertising Expense
Automobile Expense
Depreciation Expense
insurance Expense
Supplies Expense
Telephone Expense
Wages Expense
Utilities Expense
Max Granger, Drawing Max Granger, Capital
$ 212,000
24,500
1,575
2.300
18,000
24,000
65,000
1,450
975
550
100
425
885
3,200
400
1,000
5 356,360
Credit
§
150
400
37.500
11,000
35,500
125
271,685
356,360
Notice that the Land account does not have an associated Accumulated Depreciation account. Although Land is a fixed asset, it is never depreciated, and therefore does not have an associated Accumulated Depreciation account.
KCa 5-3 Prepare a Statement of Owner's Equity
Use the Adjusted Trial Balance in KCa 5-2 to prepare a Statement of Owner's Equity for the first month of operations of Max Energy, Inc. An Excel template, in which you may record your answer(s), can be found in the Student Resource Center.
KCa 5-4 Prepare a Balance Sheet
Use the Adjusted Trial Balance in KCa 5-2 to prepare a Balance Sheet for the first month of operations of Max Energy, Inc. An Excel template, in which you may record your answer(s), can be found in the Student Resource Center.
KCa 5-5 Complete the Closing Entry Process
Use the Adjusted Trial Balance in KCa 5-2 to prepare the Closing Journal Entries for the first month of operations of Max Energy, Inc. You will then complete the Post-Closing Trial Balance. An Excel template, in which you may record your answers), can be found in the Student Resource Center.
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