TOUCHTONE TALENT AGENCY

TOUCHTONE TALENT AGENCY

JOURNAL ENTRIES

Particulars	Debit $	Credit $
Depreciation exp A/c	250
Accumulated  depreciation A/c		250
Unearned income A/c	2500
revenue earned A/c		2500
Salary A/c	1360
Salary P/A A/c		1360
Rent A/c	600
Prepaid rent A/c		600
Income R/A A/c	3000
revenue earned A/c		3000
Supplies expenses A/c	370
Supplies A/c		370
Insurance A/c	125
Unexpired insurance A/c		125
Interest Expenses A/c	45
Interest P/A A/c		45
Income tax expenses A/c	325
Income tax payable A/c		325

TOUCHTONE TALENT AGENCY

Adjusted trial balance

December 31, 2005

Particulars	Debit $	Credit $
Cash	14950
Fees R/A (35300+3000)	38300
Prepaid rent (1200-600)	600
Unexpired insurance (375-125)	250
Office supplies (900-370)	530
Office equipment	15000
Acc-Depreciation (12000+250)		12250
Accounts P/A		1500
Notes  P/A (6000+45)		6045
Income tax P/A (3200+325)		3525
Unearned office fees (8000-2500)		5500
Capital stock		20000
Retained earning		10800
Dividend	800
Agency fees earned(46500+2500+3000)		52000
Telephone expenses	480
Office supplies exp (1130+370)	1500
Dep. exp (2750+250)	3000
Rent exp( 6100+600)	6700
Insurance (1175+125)	1300
Salaries exp( 24640+1360)	26000
Income  tax exp (3200+325)	3525
Interest exp	45
Salaries P/A		1360
Total	112980	112980

TOUCHTONE TALENT AGENCY

INCOME STATEMENT

FOR THE YEAR ENDED December 31, 2005

Particulars	$	$
Agency fees earned		52000
Less
Operative Expenses
Telephone exp	480
Office supply exp	1500
Depreciation exp	3000
Rent exp	6700
Insurance	1300
Salaries	26000
Interest expenses	45
Total operative expenses		-39025
Operative income		12975
Income tax expense		-3525
Net income		9450

                         

TOUCHTONE TALENT AGENCY

                                                              

Liabilities	Rs.	Rs.
Equities and liabilities
capital reserves		20000
Un appropriated profit		19450
Current liabilities
Account P/A		1500
Notes P/A		6045
Income tax P/A		3525
un earned fees		5500
Salaries P/A		1360
Total Liabilities		57380
Assets
Non-current Assets
Equipment	15000
Depreciation	-12250	2750
Current Assets
Cash		14950
Fees R/A		38300
Prepaid Rent		600
Unexpired Insurance		250
Office supplies		530
Total Assets		57380