Question

< Questions 5.9 of 19 > . Sove & Submit The following information applies to the questions displayed below! On January 2018, Red Flash Photography had the following balances: Cash, $18,000: Supplies, $8.600 Land, $66,000: Deferred Revenue, $5,600; Common Stock $56.000, Retained Earnings, $31.000. During 2018, the company had the following transactions 1 Issue additional shares of common stock $26.000 2. Provide services to customers for cash, 541.000, and on account $36,000. 3. Paysalaries to employees for work in 2018. $29,000. 4. Purchase rental space for one year $18,000 5. Purchase supplies on account $28.000. 6. Pay dividends. $2600 The following information is available on December 31, 2018 1. Employees are owed an additional $4600 in salaries 2. Three months of the total space has expired. 3. Supplies of $5,000 remain on hand 4. All of the services associated with the beginning deferred revenue have been performed

Answer 1

1) Income Statement:

RED FLASH PHOTOGRAPHY
Income Statement
For the Year Ended December 31, 2018
Services Revenue		$82,600
Total Revenue		$82,600
Expenses:
Supplies Expense	$31,000
Salaries Expense	$33,600
Rent Expense	$4,500
Total expenses		$69,100
Net Income		$13,500

2) Statement of Stockholder's Equity:

RED FLASH PHOTOGRAPHY
Statement of Stockholder's Equity
For the Year Ended December 31, 2018
	Common Stock	Retained Earnings	Total Shareholder's Equity
Balance at January 1	$56,000	$31,000	$87,000
Add: Issue of New Common Stock	$26,000		$26,000
Less: Dividend Payment		$(2,600)	$(2,600)
Add: Net Income		$13,500	$13,500
Balance at December 31	$82,000	$41,900	$123,900

3) Balance Sheet:

RED FLASH PHOTOGRAPHY
Balance Sheet
December 31, 2018
Assets		Liabilities
Cash	$35,400	Accounts Payable	$28,000
Accounts Receivable	$36,000	Salaries Payable	$4,600
Supplies	$5,600
Prepaid Rent	$13,500
Total Current Assets	$90,500	Total Current liabilities	$32,600
		Stockholder's Equity
Land	$66,000	Common Stock	$82,000
		Retained Earnings	$41,900
Total Assets	$156,500	Total Liabilities and Stockholder's Equity	$156,500