Reference no: EM132480764
Question - The adjusted trial balance of Special Event Security Services (SESS), an unincorporated business owned and operated by Jim Popovich, is provided below:
SPECIAL EVENT SECURITY SERVICES Adjusted Trial Balance September 30, 2021
Debit Credit
Cash $10,000
Accounts receivable 8,500
Prepaid insurance 1,100
Land 50,000
Building 260,000
Accumulated depreciation-building $31,200
Equipment 18,000
Accumulated depreciation-equipment 7,200
Accounts payable 15,500
Accrued interest 500
Unearned revenue 25,000
Note payable 100,000
J. Popovich, capital 48,150
J. Popovich, drawings 36,000
Service revenue 420,000
Depreciation expense 2,350
Insurance expense 6,600
Interest expense 5,000
Rent expense 60,000
Wages expense 190,000
$ 647,550 $ 647,550
Additional information:
i. The note payable is due in annual instalments of $10,000 principal plus interest. The next payment is due August 31, 2022.
ii. Jim Popovich invested $20,000 on June 1, 221.
Instructions - Prepare the following for the year ended September 30, 2021:
a) The income statement;
b) Statement of owner's equity and
c) Classified balance sheet.