Essay About Began Business And Net Income

Accounting Case
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Parkview Landscaping Corporation
Parkview Landscaping Corporation
Parkview Landscaping Corporation
Income Statement
Statement of Retained Earnings
Balance Sheet
For the Month Ending July 31
For the Month Ending July 31
July 31
Revenues:
Retained Earnings, July 1
Assets:
Landscaping Revenue
$5,344
Add: Net Income
2,144
$21,356
Subtotal
Prepaid Insurance
2,200
Expenses:
Less: Dividends
1,600
Landscaping Supplies
Rent Expense
2,080
Retained Earnings, July 31
$544
Landscaping Equipment
8,800
Utility Expense
Less: Accum. Depr.
(140)
Insurance Expense
Total Assets
32,604
Supplies Expense
Depreciation Expense
Liabilities:
Income Taxes Expense
Accounts Payable
7,980
Total Expenses
3,200
Income Taxes Payable
Total Liabilities
8,060
Net Income
2,144
Stockholders Equity:
Common Stock
24,000
Retained Earnings
Total Stockholders Equity
24,544
Total Liabilities &
Stockholders Equity
$32,604
Parkview Landscaping Corporation
Trial Balance
July 31
Account Title
Debit
Credit
Cash(Debit)
21356
Prepaid Insurance (Debit)
Landscaping Supplies (Debit)
Landscaping Equipment(Debit)
Accum. Depr-Equipment
Accounts Payable (Credit)
7980
Income Tax Payable
Common Stock (Credit)
24000
Retained Earnings
Dividents (Debit)
Landscaping Revenue (Credit)
5344
Rent Expense (Debit)
Utitlity Expense (Debit)
Insurance Expense
Supplies Expense
Depreciation Expense
Income Tax Expense
37324
37324
July 1
Began business by making a deposit in a company bank account of $24,000, in exchange
for 4,800 shares of $5 par value common stock.
July 1
Paid the premium on a one-year insurance policy, $2,400.
July 1
Paid the current months rent, $2,080.