Question

Income Statement and Balance Sheet The following information for Rogers Enterprises is available at December 31, 2019, and includes all of Rogers' financial statement amounts except retained earnings:

Accounts receivable $72,920

Cash 13,240

Common stock (10,000 shares) 65,000

Income taxes expense 13,000

Income taxes payable 4,150

Interest expense 16,500

Notes payable (due in 10 years) 25,000

Prepaid rent (building) 31,500

Property, plant, and equipment 90,000

Rent expense 135,000

Retained earnings ?

Salaries expense 235,200

Salaries payable 15,710

Service revenue 464,000

Supplies 43,600

Supplies expense 32,500

Required: Prepare a single-step income statement for the year ending December 31, 2019, for Rogers. Rogers Enterprises Income Statement For the Year Ended December 31, 2019 Revenues: Common stock Retained earnings Salaries expense Service revenue Supplies expense $ Expenses: Cash Notes payable Salaries expense Salaries payable Service revenue $ Accounts receivable Prepaid rent Property, plant, and equipment Rent expense Salaries payable Cash Common stock Service revenue Supplies Supplies expense Cash Interest expense Retained earnings Salaries payable Service revenue Accounts receivable Income taxes expense Income taxes payable Notes payable Salaries payable Net income $ Feedback Prepare a classified balance sheet for the year ending December 31, 2019, for Rogers. Rogers Enterprises Balance Sheet December 31, 2019 Assets Current assets: Cash Common stock Income taxes payable Notes payable Supplies expense $ Accounts receivable Interest expense Retained earnings Salaries payable Service revenue Income taxes expense Property, plant, and equipment Notes payable Supplies Supplies expense Income taxes payable Interest expense Prepaid rent Rent expense Retained earnings Total current assets $ Cash Accounts receivable Income taxes expense Property, plant, and equipment Service revenue Total assets $ Liabilities Current liabilities: Accounts receivable Cash Property, plant, and equipment Salaries expense Salaries payable $ Cash Common stock Income taxes expense Income taxes payable Supplies Total current liabilities $ Long-term liabilities: Income tax payable Prepaid rent Notes payable Salaries payable Supplies expense Total liabilities $ Stockholders' Equity Stockholders' equity: Accounts receivable Cash Common stock Notes payable Prepaid rent $ Accounts receivable Income taxes payable Property, plant, and equipment Retained earnings Supplies Total stockholders' equity Total liabilities and stockholders' equity $

Answer 1

Single-Step Income statement:

Income Statement
For the year ended December 31,2019
Revenues:
Service revenue		$464,000
Expenses:
Rent expense	$135,000
Salaries expense	$235,200
Supplies expense	$32,500
Interest expense	$16,500
Income taxes expense	$13,000
Total expenses		$432,200
Net income		$31,800

Classified Balance Sheet:

Balance Sheet
As of December 31,2019
Assets		Liabilities and stockholder's equity
Current assets:		Current liabilities:
Accounts receivable	$72,920	Income taxes payable	$4,150
Cash	$13,240	Salaries payable	$15,710
Prepaid rent	$31,500	Total current liabilities	$19,860
Supplies	$43,600	Long-term liabilities:
Total Current assets	$161,260	Notes payable	$25,000
		Total liabilities	$44,860
Property, plant, and equipment	$90,000
		Stockholder's equity:
		Common stock	$65,000
		Retained earnings*	$141,400
		Total stockholder's equity	$206,400
Total Assets	$251,260	Total liabilities and stockholder's equity	$251,260

*Retained earnings = Total assets - Total liabilities - Common stock

= $251,260-$44,860-$65,000

= $141,400