Prepare a statement of income for April 2016 On April 1, 2016, Mar Cruz, a lawyer, opened his own legal practice. The business adjusts and closes itsaccounts at the end of each month. The following trial balance was prepared after one month ofoperations.Unadjusted Trial BalanceDobitAccount Title and ExplanationCroditCash10,060Accounts ReceivablePrepaid ExpensesSuppliesOffice EquipmentAccum. Deprn-Off EqptNotes PayableInterest PayableUnearned Service RevenueCruz, Capital7,8001,46026,40016,00015,02020,000Cruz, Withdrawal3000Service Revenue1,580Supplies ExpenseSalaries Expense2,6801,20052,60052,600More information:No interest has yet been paid on the note payable. Accrued interest at April 30 amounts to PHP200.Salaries earned by the office staff but not yet recorded or paid anmounted to PHP970 by April 30.Many clients are asked to make advance payment for legal services to be rendered in future months.These advances are credited to the Unearned Service Revenue account once received. During April,PHP5.020 of these advances were earned by the business.Office supplies on hand by April 30 amounted to PHP400.The office equipment was purchased on April 1 and is being depreciated over an estimated useful lifeof 10 years with no residual value.

Statement of income is one of the financial statement which shows all incomes and all expenses of…

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Business

Accounting

Prepare a statement of income for April 2016

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter4: Completing The Accounting Cycle

Section: Chapter Questions

Problem 3PB: The unadjusted trial balance of La Mesa Laundry at August 31, 2016, the end of the fiscal year,...

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Question

Prepare a statement of income for April 2016

On April 1, 2016, Mar Cruz, a lawyer, opened his own legal practice. The business adjusts and closes its
accounts at the end of each month. The following trial balance was prepared after one month of
operations.
Unadjusted Trial Balance
Dobit
Account Title and Explanation
Crodit
Cash
10,060
Accounts Receivable
Prepaid Expenses
Supplies
Office Equipment
Accum. Deprn-Off Eqpt
Notes Payable
Interest Payable
Unearned Service Revenue
Cruz, Capital
7,800
1,460
26,400
16,000
15,020
20,000
Cruz, Withdrawal
3000
Service Revenue
1,580
Supplies Expense
Salaries Expense
2,680
1,200
52,600
52,600
More information:
No interest has yet been paid on the note payable. Accrued interest at April 30 amounts to PHP200.
Salaries earned by the office staff but not yet recorded or paid anmounted to PHP970 by April 30.
Many clients are asked to make advance payment for legal services to be rendered in future months.
These advances are credited to the Unearned Service Revenue account once received. During April,
PHP5.020 of these advances were earned by the business.
Office supplies on hand by April 30 amounted to PHP400.
The office equipment was purchased on April 1 and is being depreciated over an estimated useful life
of 10 years with no residual value.

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