Question

The records of Andy’s Games at December 31, 2017 showed the following account balances:
Accounts payable $12,000
Wages expense $60,000
Insurance expense 1,000
Advertising expense 10,000
Accounts receivable 19,000
Cash 15,000
Andy, capital, Jan 1, 2017 62,500
Equipment 25,000
Land 12,000
Maintenance expense 6,000
Notes payable 31,000
Revenues 130,000
Building 50,000
Interest expense 1,500 I

n addition, Andy withdrew $36,000 during the year for personal expenses.

Prepare in good form an Income Statement, Statement of Owner’s Equity, and Balance Sheet for the Year Ended December 31, 2017.

Answer 1

Income Statement
Revenues	130,000
Expenses:
Wages expense	-60,000
Insurance expense	-1,000
Advertising expense	-10,000
Maintenance expense	-6,000
	-1,500
Total expenses	-78,500
Net Income	$51,500
Statement of Retained Earnings
Beginning retained earnings	62,500
Net Income	51,500
	$114,000
Andy's Drawings	-36,000
Retained earnings, Ending	$78,000
Balance Sheet
Assets	Amount	Liabilities + Owners Equity	Amount
Current Assets:		Current Liabilities:
Cash	15,000	Accounts payable	12,000
Accounts receivable	19,000	Note payable	31,000
Total Current Assets	34,000	Total Current Liabilities	43,000
Plant,Assets :		Owners Equity	78,000
Land	12,000
Building	50,000
Equipment	25,000
Total Plant Assets	87,000
Total Assets	$121,000	Total Liabilities & Owners Equity	$121,000

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