Preparing a worksheet Data for the unadjusted trial balance of Mexican Riviera Tanning Salon at March 31, 2012, follow.
|
Cash |
$13,000 |
Service revenue |
$89,900 |
|
Equipment |
66,500 |
Salary expense |
42,200 |
|
Accumulated depreciation |
18,500 |
Depreciation expense |
|
|
Accounts payable |
3,200 |
Supplies expense |
|
|
Supplies |
1,400 |
Retained earnings |
1,500 |
|
Common stock |
10,000 |
|
|
Adjusting data for March 2012 are:
a. Accrued service revenue, $2,600.
b. Supplies used in operations, $400.
c. Accrued salary expense, $1,700.
d. Depreciation expense, $4,100.
Les Neeland, the principal stockholder, has received an offer to sell the company. He needs to know the net income for the month covered by these data.
Requirements
1. Prepare the worksheet for Mexican Riviera Tanning Salon.
2. How much was the net income/net loss for March?