Question

Presented here are the accounts of Golden City Barbershop for the year ended December 31, 2018. (Click the icon to view the accounts.) Requirements Prepare Golden City's Barbershop's income statement Prepare the statement of retained carnings 3. Prepare the balance sheet 2. Golden City Barbershop Income Statement Year Ended December 31, 2018 Revenue $ 192,000 Data Table Service Revenue Expenses Property Tax expenso Rent Expense Salaries Expense Advertising Expense S $ 3,200 11,000 68,000 20,000 2,400 6,900 Common Stock Accounts Accounts Payable Accounts Receivable Advertising Expense Building Insurance Expense Interest Expense 7.000 20.000 3,200 31,000 11.000 66,000 1.200 192,000 14,000 Land Notes Payable Property Tax Expense Dividends Rent Expense Salaries Expense Salaries Payable Service Revenue Office Supplies Retained Earnings, Dec. 31. 2017 31,000 12,000 1.600 20,000 131.100 4,000 16,000 2.400 8.900 Total Expenses 109,500 Cash Net Income B2,500 Equipment Insurance Expense Interest Expense Requirement 2. Prepare the statement of retained earnings. (Check your spelling carefully and do not abbreviate) 50.000 Golden City Barbershop Statement of Retained Earnings Year Ended December 31, 2018 Retained Eaminga. Dec 31, 2017 Net Income $ Print Done 50,000 1920 Dividends (31.000) Retained Earings, Dec 31, 2018

Answer 1

Requirement 1:

Golden City Barbershop
Income Statement
Year Ending December 31,2018
Revenues:
Service revenue		$192,000
Expenses:
Property tax expense	$3,200
Rent expense	$11,000
Salaries expense	$66,000
Advertising expense	$20,000
Insurance Expense	$2,400
Interest expense	$6,900
Total expenses		$109,500
Net income		$82,500

Requirement 2:

Golden City Barbershop
Statement of Retained Earnings
Year Ending December 31,2018
Retained earnings, Dec.31 2017	$50,000
Net income	$82,500
	$132,500
Dividends	($31,000)
Retained earnings, Dec.31 2018	$101,500

Requirement 3:

Golden City Barbershop
Balance Sheet
As of December 31,2018
Assets		Liabilities and stockholders' equity
Cash	$4,000	Accounts payable	$12,000
Accounts receivable	$1,600	Salaries payable	$1,200
Office supplies	$14,000	Notes payable	$28,000
Land	$7,000	Total liabilities	$41,200
Building	$131,100	Stockholders' equity:
Equipment	$16,000	Common stock	$31,000
		Retained earnings	$101,500
		Total stockholders' equity	$132,500
Total Assets	$173,700	Total liabilities and stockholders' equity	$173,700