accounts-GARCIA COMPANY

The trial balances before and after adjustment for Garcia Company at the end of its fiscal year are presented below.
GARCIA COMPANY
Trial Balance
August 31, 2011

Before
Adjustment

After Adjustment

Dr.

Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Office Equipment
Accumulated Depreciation­Office Equipment
Accounts Payable
Salaries Payable
Unearned Rent Revenue
Common Stock
Retained Earnings
Service Revenue
Rent Revenue
Salaries Expense
Office Supplies Expense
Rent Expense
Insurance Expense

$10,400
8,800
2,300
4,000
14,000

Cr.

Depreciation Expense

17,000
­0­
15,000
­0­
0­

$71,500

Dr.

$3,600
5,800
­0­
1,500
10,000
5,600
34,000
11,000

Cr.

$10,400
9,800
700
2,500
14,000

18,100
1,600
15,000
1,500
900

$71,500

$74,500

$4,500
5,800
1,100
600
10,000
5,600
35,000
11,900

$74,500

Prepare the income statement and a retained earnings statement for the year and the balance sheet at August
31. (For the income statement, list amounts from largest to smallest e.g. 10, 5, 3, 2. For the balance sheet, list
assets in order of liquidity and liabilities from largest to smallest e.g. 10, 5, 3, 2. List Common Stock first
followed by Retained Earnings. Enter all amounts as positive amounts and subtract where necessary.)
GARCIA COMPANY
Income Statement
Revenues

$

Total revenues
Expenses

$

Total expenses
Net income

$
GARCIA COMPANY

Retained Earnings Statement
$

Add:

$
GARCIA COMPANY
Balance Sheet
Assets
$

$
Less:
Total assets

$

Liabilities and Stockholders’
Equity
Liabilities

$

Total liabilities
Stockholders’ Equity

$

Total stockholders’ equity
Total liabilities and Stockholders’ equity

$