Question

a. Prepare an income statement.

b. Prepare the statement of retained earnings.

c. Prepare the balance sheet.

Transactions and events during 2018 (summarized in thousands of dollars) follow: A. Borrowed S13 cash on March 1 using a short-term note. B. Purchased land on March 2 for future building site; paid cash, $7. C. Issued additional shares of common stock on April 3 for $25. D. Purchased software on July 4, S12 cash. E. Purchased supplies on account on October 5 for future use, $17. E Paid accounts payable on November 6, $14. G. Signed a $30 service contract on November 7 to start February 1, 2019, H. Recorded revenues of $164 on December 8, including S42 on credit and $122 collected in cash. 1. Recognized salaries and wages expense on December 9, 587 paid in cash. J. Collected accounts receivable on December 10, S26. Data for adjusting journal entries as of December 31: K Unrecorded amortization for the year on software, $7. L. Supplies counted on December 31, 2018, SII. M. Depreciation for the year on the equipment, $7. N. Interest of S2 to accrue on notes payable. 0. Salaries and wages earned but not yet paid or recorded, $11. P. Income tax for the year was $9. It will be paid in 2019.

Answer 1

$ 164 J & G Tool, Inc. income statement for the year ended December 31, 2018 revenues service revenue expenses salaries and wages expense depreciation expense amortization expense income tax expense interest expense supplies expense total expenses net income $17 $ 140 $ 24

J & G Tool, Inc. statement of retained earnings for the year ended December 31, 2018 retained earnings balance, January 1, 2018 add: net income retained earnings balance, December 31, 2018 | $ 7 $ 24 $31

$ 101 $ 7 $ 48 & G Tool, Inc. Balance Sheet as on ended December 31, 2018 Assets current assets cash $ 70 accounts receivable $ 20 supplies $ 11 total current assets long term assets land equipment $ 62 less: accumulated depreciation -$ 14 software $ 30 less: accumulated amortization $ 14 total assets liabilities and stockholders' equity liabilities current liabilities accounts payable $ 9 notes payable (short term) $ 13 salaries and wages payable $ 11 interest payable income tax payable $9 total current liabilities long term liabilities stockholders' equity common stock $ 97 retained earnings $ 31 total stockholders' equity total liabilities and stockholders' equity $ 16 $ 172 $ 44 $ 128 $ 172