Question

Please help me prepare an income statement, statement of retained earnings and a balance sheet for Palmer Corp. thanks.

ACCT 2010 FALL 2017-Chapter 1 THE PREPARATION OF FINANCIAL STATEMENTS Due: Palmer Corporation finished its 3rd year of operations on 12/31/2016. At the beginning of the year (January 1, 2016), Palmer Corporation had a Retained Earnings Balance of $22,000. During 2016, Palmer Corporation paid S5,000 in dividends In addition, the following balances existed for Palmer Corporation at the end of the year of 2016 (December 31, 2016): $98,000 Service Revenue $32,600 4,000 Land Cash Rent Expense 6,000 Supplies Common Stock 74,000 Advertising Expense 500 11,000 4,000 2,000 Accounts Receivable 10,000 Salaries Expense Accounts Payable Wages Payable 100 Required: Use the above information to prepare: (1)An Income Statement ( A Saiance sSheet for Pame Corporation for the year 2010. (3) A Balance Sheet for Palmer Corporation for the year 2016. You can prepare these statements "by hand" (please write neatly) or prepare them using WORD or EXCEL (must print your work to submit in class). NOTE: Use proper headings on all statements and label all #'s Use Pages 22-23 from the text as a model for your set of statements Late work is not accepted. If you cannot submit your work in class on the due date, you can email your work as an attachment PRIOR to the start of class on the due date Cluck WI 15, 100 T 15 112, Ibo

Answer 1

INCOME STATEMENT
Service Revenue	$               32,600
Less: Expenses
Rent Expenses	$                 6,000
Advertising Expenses	$                     500
Salaries Expenses	$               11,000
Total Expenses	$               17,500
Net Income	$               15,100
STATEMENET OF RETAINED EARNINGS
Beginning Retained Earnings	$               22,000
Add: Net Income	$               15,100
Less: Dividend on common Shares	$                 5,000
Closing Retained Earning	$               32,100
BALANCE SHEET
ASSETS:	AMOUNT	LIABILITIES & SHAREHOLDER'S EQUITY	AMOUNT
CURRENT ASSETS:		LIABILITIES:
Cash	$                 4,000	Account Payable	$                       4,000
Account Receivable	$               10,000	Wages Payable	$                       2,000
Supplies	$                     100
Total Current Assets (A)	$               14,100	Total Liabilities (A)	$                       6,000
FIXED ASSETS:		SHAREHOLDER'S EQUITY
Land	$               98,000	Common Stock	$                     74,000
		Retained Earning	$                     32,100
Total Fixed Assets (B)	$               98,000	Total of Shareholder's Equity	$                 1,06,100
TOTAL OF ASSETS (A+B)	$           1,12,100	TOTAL OF LIABILITES & SAHREHOLDER'S EQUITY (A + B)	$                 1,12,100