Respuesta :
Service Revenue.................................65000
Rent Revenue..........................................6000
To Income Summary.....................................................71000
Income Summary..........................78900
To Depreciation Expense..............................................7000
To Salaries Expense.......................................................56400
To Utilitites Expense.........................................................15500
Retained Earnings.....................................................................7900
To Income Summary...............................................................................7900
Answer: The Net loss Position is -$7,900. The distributable retained earnings (post dividend payment and loss recognition) is $3,600 and the Net Asset Position of Plevin Company is $21,050
Explanation:
The response below looks all muddied up, but i have attached an excel file to help you understand how i arrived at the conclusions above.
Plevin Company
Income Statemenet for the Year Ended July 31, 2017
Revenue:
Service Revenue 65,000
Rent Revenue 6,000
Net Income 71,000
Less Expenses:
Salaries & Wages 56,400
Utilities 15,500
Depreciation 7,000
Net Expenses 78,900
Net Loss -7,900
schedule of distributable Profit
Opening Balance of Retained Earnings 27,000
Add Net Loss for the year -7,900
Less Dividend Payment 15,500
Closing balance of Retained Earnings 3,600
Plevin Company
Balance Sheet as at July 31, 2017
Fixed Assets:
Equipment 15,600
less Accumulated Depreciation -7,500
Net Book Value 8,100
Current Assets
Cash 10,050
Account receivable 9,500
19,550
Current Liabilities
Accounts Payable 4,800
Unearned rent revenue 1,800
6,600
Working Capital (Current Asset less Current Liability) 12,950
Net Assets 21,050
Shareholders Fund:
Common Stock 17,450
Add Retained Earnings 3,600
Net Shareholders Fund 21,050
