Question

Preparing a worksheet
The trial balance of telegraphic link at November 30, follows:
Telegraphic Link Trial Balance November 30, 2014
Balance
Account title Debit Credit
Cash $4,000
Accounts receivable 3,200
Prepaid rent 1,900
Office supplies 3,000
Equipment 34,800
Accumulated depreciation—equipment $1,600
Accounts payable 5,400
Salaries payable
Common stock 35,700
Dividends 2,100
Service revenue 8,600
Depreciation expense—equipment
Salaries expense 1,700
Rent expense
Utilities expense 600
Supplies expense
Total $51,300 $51,300
Additional information at November 30, 2014
Accrued service revenue, $600.
Depreciation $300.
Accrued salaries expense $800.
Prepaid rent expire, $500.
Office supplies, $100.
Requirements:
Complete Telegraphic Link’s worksheet for the month ended November 30, 2014.
How much was net income for November.

Answer 1

Answer:

Entries to Record Additional Information.

J1

Trade Receivable $600 (debit)

Service Revenue $600 (credit)

J2

Depreciation $300 (debit)

Accumulated Depreciation $300 (credit)

J3

Salaries Expense $800 (debit)

Salaries Accrued $800 (credit)

J4

Rent Expense $500 (debit)

Prepaid Rent $500 (credit)

J5

Office Supplies $100 (debit)

Cash $100 (credit)

Adjustments to Relevant Ledger Accounts :

Service Revenue = $8,600 + $600 = $9,200

Depreciation = $300

Salaries Expense = $1,700 + $800 = $2,500

Rent Expense = $500

Supplies Expense = $100

November Net Income = $ 5,200

Explanation:

Income Statement for the Year Ended November 20,2014 :

Service Revenue                                $9,200

Less Expenses :

Depreciation                        $300

Salaries Expense              $2,500

Rent Expense                      $500

Supplies  Expense               $100

Utilities expense                  $600    ($4,000)

Net Income / (Loss)                            $5,200