3 ACCOUNT 4 Cash 5 Bank 6 Accounts Payable 7 Salaries and wa

3 ACCOUNT 4 Cash 5 Bank 6 Accounts Payable 7 Salaries and wages Payable 8 Retained Earnings 9 Prepaid Insurance 10 Unearned Service Revenue 11 Allow ance for doubtful accour 12 Land 13 Loss onland 14 Depreciation expense 15 Car Expense 16 Home Expense 17 Eating Expense 18 School Expense 19 Shopping Expense 20 Entertainment Expense 21 Salaries and Wages Expense 22 Insurance expense 23 Uncollectible expense 24 Accumulated depreciation DEBIT CREDIT 44,746.50 510.00 30,064.83 300.00 51,600.00 500.00 2,200.00 2,900.00 2,000.00 500.00 556.81 400.41 123.14 150.00 22.28 229.16 300.00 500.00 1,900.00 500.00 18.200.00 25 Service Revenue 26 COGS 27 Computer Equipment 28 Inventory 29 Accounts Receivable 10,000.00 11,000.00 5,000.00 23,000.00 30 Performed Services 31 Total 32 1,673.47 107.438.30 107.438.30 34 35 3B

Solution

Statement of Retained Earnings

Particulars

Amount ($)

Retained Earnings - Beginning Balance

51,600.00

Add: Net Income for the year

1,518.20

Retained Earnings – Ending Balance

53,118.20

Workings for Calculating Net Income for the year

INCOME STATEMENT

Particulars

Amount ($)

Amount ($)

Revenues and Gains

Service Revenue

18,200.00

Total Revenues and Gains

18,200.00

Expenses and Losses

Cost of goods sold

10,000.00

Car Expenses

556.81

Home Expenses

400.41

Eating Expenses

123.14

School Expenses

150.00

Shopping Expenses

22.28

Entertainment Expenses

229.16

Salaries and Wages Expenses

300.00

Insurance Expenses

500.00

Uncollectible Expenses

1,900.00

Loss on Land

2,000.00

Depreciation Expenses

500.00

Total Expenses and Losses

16,681.80

Net Income

1,518.20

Statement of Retained Earnings
Particulars	Amount ($)
Retained Earnings - Beginning Balance	51,600.00
Add: Net Income for the year	1,518.20
Retained Earnings – Ending Balance	53,118.20