Question

Boilermaker Unlimited specializes in building new homes and remodeling existing homes, Remodeling projects include adding game rooms, changing kitchen cabinets and countertops, and updating bathrooms. Below is the year-end adjusted trial balance of Boilermaker Unlimited. $ BOILERMAKER UNLIMITED Adjusted Trial Balance December 31, 2021 Accounts Debits Cash 14,000 Accounts Receivable 26,000 Supplies 33,000 Prepaid Insurance 5,000 Equipment 375,000 Accumulated Depreciation Accounts Payable Salaries Payable Utilities Payable Notes Payable (due in 5 years) Common Stock Retained Earnings Dividends 24,000 Service Revenue-new construction Service Revenue-remodeling Salaries Expense 140,000 Supplies Expense 265,000 Depreciation Expense 30,000 Insurance Expense 23,000 Utilities Expense 40.000 Interest Expense 7,200 Service Fee Expense 53.000 Totals $1,035,200 120,000 29.000 26,000 3.000 120,000 100,000 47,200 350,000 240,000 $1,035,200 Required: 1. Prepare an income statement for the year ended December 31, 2021 2. Prepare the statement of stockholders' equity for the year ended December 31, 2021, note that during the year the company issued additional common stock for $10.000. This amount is included in the amount for Common Stock in the adjusted trial balance. 3. Prepare the classified balance sheet for the year ended December 31, 2021.

Answer 1

1.

BOILER MAKER UNLIMITED
Income Statement
For the Year Ended December 31, 2021
Service Revenues:
Service revenue-new construction	350000
Service revenue-remodelling	240000
Total Revenues		590000
Expenses:
Salaries expense	140000
Supplies expense	265000
Depreciation expense	30000
Insurance expense	23000
Utilities expense	40000
Interest expense	7200
Service fee expense	53000
Total Expenses		558200
Net Income		31800

2.

BOILER MAKER UNLIMITED
Statement of Stockholders' Equity
For the Year Ended December 31, 2021
	Common Stock	Retained Earnings	Total Stockholders' Equity
Balance at January 1	90000	47200	137200
Add: Additional issued	10000		10000
Add: Net income		31800	31800
Less: Dividends		24000	24000
Balance at December 31	100000	55000	155000

3.

BOILER MAKER UNLIMITED
Balance Sheet
December 31, 2021
Assets		Liabilities
Current Assets:		Current Liabilities:
Cash	14000	Accounts Payable	29000
Accounts Receivable	26000	Salaries Payable	26000
Supplies	33000	Utilities Payable	3000
Prepaid Insurance	5000
Total Current Assets	78000	Total Current Liabilities	58000
Long-term Assets:		Long-term Liabilities:
Equipment	375000	Notes Payable	120000
Accumulated depreciation	-120000
Total Long-term Assets	255000	Total Liabilities	178000
		Stockholder's Equity
		Common stock	100000
		Retained earnings	55000
		Total Stockholder's Equity	155000
Total Assets	333000	Total Liabilities and Stockholder's Equity	333000