Preparing Financial Statements
the Adjusted Trial Balance of Ryan Financial $\quad$

question 69

Essay

Preparing financial statements
The adjusted trial balance of Ryan Financial Planners appears below.
Instructions
Using the information from the adjusted trial balance, you are to prepare for the month ended December 31:
a) an income statement.
b) a retaired eamings statement.
c) a balence sheet.
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Ryan Financial Planners
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Adjusted Trial Balance
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ December 31, 2020

$\begin{array}{c}\begin{array}{lll}\\\text {Cash........................................................................}\\\text {Accounts Receivable................................................}\\\text {Supplies...................................................................}\\\text {Equipment................................................................}\\\text {Accumulated Depreciation-Equipment.....................}\\\text {Accounts Payable.....................................................}\\\text {Unearned Service Revenue.......................................}\\\text {Common Shares........................................................}\\\text {Retained Earnings.....................................................}\\\text {Dividends..................................................................}\\\text {Service Revenue.......................................................}\\\text {Supplies Expense....................................................}\\\text {Depreciation Expense.............................................}\\\text {Rent Expense.........................................................}\\\\\end{array}\begin{array}{r}\underline{\text { Debit } }\\\$2,900 \\2,200 \\1,800 \\16,000\\\\\\\\\\\\2,000 \\\\600 \\2,500 \\\underline{2,900 }\\\underline{\underline{\$ 30,900}} \\\end{array}\begin{array}{r}\underline{\text {Credit}}\\\\\\\\\\\$ 4,000 \\3,300 \\5,000 \\10,000 \\4,400 \\\\4,200\\\\\\\underline{\quad \quad}\\\underline{\underline{\$ 30,900}}\end{array}\end{array}$

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Definitions:

Shipment Cost

The expenses associated with the transportation of goods from one location to another, including freight charges and packaging.

Determinants of Revenue

The factors that influence the amount of income generated from sales of goods or services, such as market demand, pricing strategies, and competition.

Service Firm

A company that provides services rather than tangible goods to consumers or other businesses.

Quality of Raw Materials

The measure of suitability, consistency, and integrity of materials sourced for manufacturing, impacting the final product's quality.