USA: +1 (725) 712-1730 
Sign in
please help with prepare an Income Statement, Statement of Retained Earnings, Balance Sheet and Cash Flow Statement from the problem that you have been working on during the week. Be sure to put all of the statements in very good form.
On April 1, 2017 Hippocrates Consulting began operations with the following beginning balances entered on April 1st as seen in the T-accounts below. Enter each of the following transactions in the T-accounts. I have made each of the T-accounts but you will need to draw the vertical line to divide the debits from the credits. Complete all of the transactions below and bring this with you to class on August 15th.
April 1: Paid three months’ rent on a lease rental contract, $4,800
2: Paid a six-month insurance premium for $1,800
4: Received cash from clients as an advance payment for services to be
provided and recorded as unearned fees, $5,000
5: Purchased additional office equipment on account from Office Station Co.,
$2,000.
6: Received cash from clients on account, $1,800.
10: Paid cash for a newspaper advertisement, $120
12: Paid Office Station Co. for part of the debt incurred on April 5, $1200.
12: Recorded services provided on account for the period April 1-12, $4,200.
14. Paid part-time receptionist for two weeks’ salary, $750.
17: Recorded cash from cash clients for fees earned during the period April
1-16, $6,250.
18: Paid cash for supplies, $800.
20: Recorded services provided on account for the period April 13-20, $2,100.
24: Recorded cash from cash clients for fees earned the period April
17-24, $3,850.
26: Received cash from clients on account, $5,600.
27: Paid part-time receptionist for two weeks’ salary, $750.
29: Paid telephone bill for April, $130.
30: Paid electricity bill for April, $200.
30: Recorded cash from cash clients for fees earned for the period April 25-30,
$3,050.
30: Recorded services provided on account for the remainder of April, $1,500.
30. A dividend of $6,000 was declared and paid.
The following are adjusting entries to be recorded:
Insurance expired during April is $300.
Supplies on hand on April 30 are $1,350.
Depreciation of office equipment for April is $700.
Accrued receptionist salary on April 30 is $120.
Rent expired during April is $1,600.
Unearned fees on April 30 are $2,500.
Here is a check figure: Ending cash balance–$22,100
Accounts
Cash Receivable Supplies Prepaid Rent
——————— ——————- ————– —————
$13,100 $3,000 $1,400
Office Accumulated
Prepaid Insurance Equipment Depreciation
————————– ——————- ——————-
$12,500
Unearned
Accounts Payable Salaries Payable Fees Common Stock
———————– ——————— —————- ——————–
$30,000
Retained Earnings Fees Earned Salary Expense Rent Expense
———————— —————– ———————- ——————
Depreciation Miscellaneous
Supplies Expense Expense Insurance Expense Expense
———————– ——————— ————————- —————–
Expert Answer
| Trial Balance. | ||
| April 30, 2017 | ||
| Dr. Amt. | Cr. Amt. | |
| Cash | 22,100 | |
| Accounts Receivable | 3,400 | |
| Supplies | 1,350 | |
| Office Equipment | 14,500 | |
| Accumulated Depreciation – Office Equip. | 700 | |
| Prepaid Rent | 3,200 | |
| Prepaid Insurance | 1,500 | |
| Unearned Fees | 2,500 | |
| Accounts Payable | 800 | |
| Salary Payable | 120 | |
| Common Stock | 30,000 | |
| Fees Earned | 23,450 | |
| Advertisement Expenses | 120 | |
| Salary Expenses | 1,620 | |
| Telephone Expenses | 130 | |
| Electric Expenses | 200 | |
| Insurance Expenses | 300 | |
| Dividend | 6,000 | |
| Supplies Expenses | 850 | |
| Depreciation Expenses | 700 | |
| Rent Expenses | 1,600 | |
| Total | 57,570 | 57,570 |
| – | ||
| Income Statement | ||
| April 30, 2017 | ||
| Revenue | ||
| Fees Earned | 23,450 | |
| Less: Expenses | ||
| Advertisement Expenses | 120 | |
| Salary Expenses | 1,620 | |
| Telephone Expenses | 130 | |
| Electric Expenses | 200 | |
| Insurance Expenses | 300 | |
| Supplies Expenses | 850 | |
| Depreciation Expenses | 700 | |
| Rent Expenses | 1,600 | 5,520 |
| Net Operating Income | 17,930 | |
| Statement of Retained Earnings | ||
| April 30, 2017 | ||
| Beginning Balance | – | |
| Add: Net Operating Income | 17,930 | |
| Sub-total | 17,930 | |
| Less: Dividend | 6,000 | |
| Ending Balance | 11,930 | |
| Balance Sheet | ||
| April 30, 2017 | ||
| Assets | ||
| Current Assets | ||
| Cash | 22,100 | |
| Accounts Receivable | 3,400 | |
| Supplies | 1,350 | |
| Prepaid Rent | 3,200 | |
| Prepaid Insurance | 1,500 | 31,550 |
| Office Equipment | 14,500 | |
| Accumulated Depreciation – Office Equip. | 700 | 13,800 |
| Total Assets | 45,350 | |
| Liabilities & Shareholders’ Equity | ||
| Liabilities | ||
| Current Liabilities | ||
| Unearned Fees | 2,500 | |
| Accounts Payable | 800 | |
| Salary Payable | 120 | 3,420 |
| Total Liabilities | 3,420 | |
| Shareholders’ Equity | ||
| Common Stock | 30,000 | |
| Retained Earnings | 11,930 | |
| Total Shareholders’ Equity | 41,930 | |
| Total Liabilities & Shareholders’ Equity | 45,350 | |
| Cash Flow Statement | ||
| April 30, 2017 | ||
| Cash Flow from opearating activities: | ||
| Net Income | 17,930 | |
| Add/(Less) non cash effects on operating activities | ||
| Depreciation expense | 700 | |
| Increase in Accounts Receivables | (400) | |
| Decrease in Supplies | 50 | |
| Increase in Prepaid Rent | (3,200) | |
| Increase in Prepaid Insurance | (1,500) | |
| Increase in Accounts Payables | 800 | |
| Increase in Unearned Fees | 2,500 | |
| Increase in Salary Payable | 120 | (930) |
| Net Cash provided by operating activities | 17,000 | |
| Cash flow from Investing Activities | ||
| Purchase of Equipment | (2,000) | |
| Cash Flow / (used) from Investing activities | (2,000) | |
| Cash Flow from Financing Activities | ||
| Dividend Paid | (6,000) | |
| Cash Flow from Financing Activities | (6,000) | |
| Net Increase / (Decrease) in Cash | 9,000 | |
| Cash balance at the beginning | 13,100 | |
| Cash balance at the end | 22,100 | |
