Concept explainers
(a)
Accounting rules for
- To Increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
- To Decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.
Adjusted
Income Statement: The income statement is that financial statement which shows the net income (or loss) of the Company. In the income statement, to calculate the net income, all expenses incurred by the Company are deducted from the total income of the Company.
Retained earnings: The retained earnings statement is that financial statement which shows the amount of net income which is actually retained by the Company on a particular date. These earnings can be utilized by the Company for the reinvestment and to pay its debts.
Balance sheet: The balance sheet of a Company is the one of the most important financial statements because it shows the financial position of the Company. The main components of the balance sheet are assets, liabilities and stockholder’s equity.
Journal entries, adjusting entries, posting to ledger accounts, adjusted trial balance, Income statement, Retained earnings statement and Balance sheet of the Schilling Equipment Repair.
(b)
To journalize: The transactions for November
(c)
To post: The ledger accounts.
(d)
To prepare: Trial balance of SE Repairs as on November 30, 2019
(e)
To journalize: And
(f)
To prepare: Adjusted trial balance of SE Repairs as on November 30, 2019
(g)
To prepare: Income statement, retained earnings statement and Balance sheet of SE Repair
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