9 zero soda bottling has just completed its end of period analysis and adjustments a 4352190

9.Zero Soda Bottling has just completed its end-of-period analysis and adjustments. Account balances as of December 31, 2007 are as follows:

Cash$280,000Owners' equity$ 920,000

Accounts receivable180,000Sales revenue1,240,000

Merchandise460,000Cost of goods sold620,000

Equipment340,000Wages expense240,000

Accounts payable90,000Utility expense130,000


Prepare an Income Statement.

10.On March 1, 2007, Alana and Eva started the Decorating Review Company. They offer a complete line of decorative items and decorating services. Following are the transactions occurring during the first month of business:

1.The business was started by each partner contributing $9,000.

2.Each partner also contributed $6,000 worth of antique items from their own collections to the business.

3.The annual business license and permits totaled $1,500 and were paid in cash. (Hint: This will require an adjusting entry.  Use the asset account titled Prepaid Business Fees.)

4.A used delivery van was purchased by paying $3,000 down and signing a three-year note payable for the $15,000 balance. Interest expense on this loan is $1,800 for the first year.  The first payment is due April 15. (Hint: This will require an adjusting entry).

5.An inventory of accessories was purchased on credit for $4,500.

6.A shop was rented for $500 monthly, and the first month's rent was paid.

7.Advertising costing $700 was run in the newspaper. The bill had not yet come by the end of the month and had not been paid.

8.Services totaling $6,000 were performed during the month for cash.

9.Services totaling $10,000 were performed during the month on credit.

10.Accessories costing a total of $5,000 were sold to customers for $8,000 cash.

11.Gas, oil, and maintenance on the delivery van totaling $300 were paid for.

12.At the end of the month, Alana and Eva each withdrew $1,000 from the business for personal expenses.



Prepare an income statement for the month of March.

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