Paoli Consulting is a consulting firm owned and operated by Mary Paoli. The following end-of-period spreadsheet was prepared for the year ended March 31, 20Y9:
During the year ended March 31, 20Y9, $15,000 of additional common stock was issued.
Paoli Consulting
End-of-Period Spreadsheet
For the Year Ended March 31, 20Y9
Account Title Unadjusted
Trial Balance
Dr. Unadjusted
Trial Balance
Cr. Adjustments
Dr. Adjustments
Cr. Adjusted
Trial Balance
Dr. Adjusted
Trial Balance
Cr.
Cash 162,500 162,500
Accounts Receivable 304,500 304,500
Supplies 37,200 32,200 5,000
Land 1,400,000 1,400,000
Building 850,000 850,000
Accumulated Depreciation 59,200 12,800 72,000
Accounts Payable 36,500 36,500
Salaries Payable 18,500 18,500
Common Stock 100,000 100,000
Retained Earnings 1,860,000 1,860,000
Dividends 30,000 30,000
Fees Earned 1,675,000 1,675,000
Salary Expense 931,500 18,500 950,000
Supplies Expense 32,200 32,200
Depreciation Expense 12,800 12,800
Miscellaneous Expense 15,000 15,000
Total 3,730,700 3,730,700 63,500 63,500 3,762,000 3,762,000
Question Content Area
Based on the preceding spreadsheet, prepare an income statement for Paoli Consulting.
Paoli Consulting
Income Statement
For the Year Ended March 31, 20Y9
Line Item Description Amount Amount
Fees earned
$Fees earned
1,675,000
Expenses:
Salary expense
$Salary expense
950,000
Supplies expense
Supplies expense
32,200
Depreciation expense
Depreciation expense
12,800
Miscellaneous expense
Miscellaneous expense
15,000
Total expenses fill in the blank 6dec9000e013f97_11
1,010,000
Net income
$Net income
665,000
Feedback Area
Feedback
Revenue and expense accounts flow into the income statement.
Question Content Area
Based on the preceding spreadsheet, prepare a statement of stockholders’ equity for Paoli Consulting. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. If an amount box does not require an entry, leave it blank.
Paoli Consulting
Statement of Stockholders’ Equity
For the Year Ended March 31, 20Y9
Line Item Description Common
Stock Retained
Earnings
Total
Balances, April 1, 20Y8
$Balances, April 1, 20Y8
85,000
$Balances, April 1, 20Y8
1,860,000
$Balances, April 1, 20Y8
1,945,000
Issued common stock
Issued common stock
15,000
Issued common stock
0
Issued common stock
15,000
Net income
Net income
0
Net income
665,000
Net income
665,000
Dividends
Dividends
0
Dividends
-30,000
Dividends
-30,000
Balances, March 31, 20Y9
$Balances, March 31, 20Y9
100,000
$Balances, March 31, 20Y9
2,495,000
$Balances, March 31, 20Y9
2,595,000
Feedback Area
Feedback
The statement of stockholders' equity shows the beginning balances of common stock and retained earnings. The common stock balance will be increased by any stock issued during the period, and retained earnings will be increased by any net income and decreased by any net losses and dividends.
Question Content Area
Based on the preceding spreadsheet, prepare a balance sheet for Paoli Consulting.
Paoli Consulting
Balance Sheet
March 31, 20Y9
Line Item Description Amount Amount Amount
Assets
Current assets:
Cash
$Cash
162,500
Accounts receivable
Accounts receivable
304,500
Supplies
Supplies
5,000
Total current assets $Total current assets
472,000
Property, plant, and equipment:
Land
$Land
1,400,000
Building
$Building
850,000
Accumulated depreciation
Accumulated depreciation
72,000
Book value-Building ?????
Book value-Building
Total property, plant, and equipment ???? Total property, plant, and equipment
Total assets ????
$Total assets
During the year ended March 31, 20Y9, $15,000 of additional common stock was issued.
Paoli Consulting
End-of-Period Spreadsheet
For the Year Ended March 31, 20Y9
Account Title Unadjusted
Trial Balance
Dr. Unadjusted
Trial Balance
Cr. Adjustments
Dr. Adjustments
Cr. Adjusted
Trial Balance
Dr. Adjusted
Trial Balance
Cr.
Cash 162,500 162,500
Accounts Receivable 304,500 304,500
Supplies 37,200 32,200 5,000
Land 1,400,000 1,400,000
Building 850,000 850,000
Accumulated Depreciation 59,200 12,800 72,000
Accounts Payable 36,500 36,500
Salaries Payable 18,500 18,500
Common Stock 100,000 100,000
Retained Earnings 1,860,000 1,860,000
Dividends 30,000 30,000
Fees Earned 1,675,000 1,675,000
Salary Expense 931,500 18,500 950,000
Supplies Expense 32,200 32,200
Depreciation Expense 12,800 12,800
Miscellaneous Expense 15,000 15,000
Total 3,730,700 3,730,700 63,500 63,500 3,762,000 3,762,000
Question Content Area
Based on the preceding spreadsheet, prepare an income statement for Paoli Consulting.
Paoli Consulting
Income Statement
For the Year Ended March 31, 20Y9
Line Item Description Amount Amount
Fees earned
$Fees earned
1,675,000
Expenses:
Salary expense
$Salary expense
950,000
Supplies expense
Supplies expense
32,200
Depreciation expense
Depreciation expense
12,800
Miscellaneous expense
Miscellaneous expense
15,000
Total expenses fill in the blank 6dec9000e013f97_11
1,010,000
Net income
$Net income
665,000
Feedback Area
Feedback
Revenue and expense accounts flow into the income statement.
Question Content Area
Based on the preceding spreadsheet, prepare a statement of stockholders’ equity for Paoli Consulting. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. If an amount box does not require an entry, leave it blank.
Paoli Consulting
Statement of Stockholders’ Equity
For the Year Ended March 31, 20Y9
Line Item Description Common
Stock Retained
Earnings
Total
Balances, April 1, 20Y8
$Balances, April 1, 20Y8
85,000
$Balances, April 1, 20Y8
1,860,000
$Balances, April 1, 20Y8
1,945,000
Issued common stock
Issued common stock
15,000
Issued common stock
0
Issued common stock
15,000
Net income
Net income
0
Net income
665,000
Net income
665,000
Dividends
Dividends
0
Dividends
-30,000
Dividends
-30,000
Balances, March 31, 20Y9
$Balances, March 31, 20Y9
100,000
$Balances, March 31, 20Y9
2,495,000
$Balances, March 31, 20Y9
2,595,000
Feedback Area
Feedback
The statement of stockholders' equity shows the beginning balances of common stock and retained earnings. The common stock balance will be increased by any stock issued during the period, and retained earnings will be increased by any net income and decreased by any net losses and dividends.
Question Content Area
Based on the preceding spreadsheet, prepare a balance sheet for Paoli Consulting.
Paoli Consulting
Balance Sheet
March 31, 20Y9
Line Item Description Amount Amount Amount
Assets
Current assets:
Cash
$Cash
162,500
Accounts receivable
Accounts receivable
304,500
Supplies
Supplies
5,000
Total current assets $Total current assets
472,000
Property, plant, and equipment:
Land
$Land
1,400,000
Building
$Building
850,000
Accumulated depreciation
Accumulated depreciation
72,000
Book value-Building ?????
Book value-Building
Total property, plant, and equipment ???? Total property, plant, and equipment
Total assets ????
$Total assets