Question

These items are taken from the financial statements of Tamarisk, Inc. for 2017 Retained earnings (beginning of year) Utilities expense Equipment Accounts payable Cash Salaries and wages payable Common stock Dividends Service revenue Prepaid insurance Maintenance and repairs expense Depreciation expense Accounts receivable Insurance expense Salaries and wages expense Accumulated depreciation-equipment $34,800 2,180 69,800 21,500 14,060 6,820 12,000 12,000 72,290 7,320 1,620 3,160 14,900 2,640 41,290 21,560 Prepare an income statement for the year ended December 31, 2017

Answer 1

A	B	C	D	E	F	G
2
3		Income Statement:
4		Revenue
5		Service Revenue		$72,290
6		Expenses
7		Salaries and Wages Expense	$41,290
8		Depreciation Expense	$3,160
9		Insurance Expense	$2,640
10		Maintenance and Repairs Expense	$1,620
11		Utilities Expense	$2,180
12		Total Expenses		$50,890
13		Net Income		$21,400
14
15		Retained Earnings Statement:
16		Beginning Balance	$34,800
17		Add: Net Income	$21,400
18			$56,200
19		Less: Dividends Paid	$12,000
20		Ending Balance	$44,200
21
22		Balance Sheet
23		Assets
24		Cash	$14,060
25		Accounts Receivable	$14,900
26		Prepaid Insurance	$7,320
27		Total current assets	$36,280
28		Equipment	$69,800
29		Less: Accumulated Depreciation - Equipment	$21,560
30		Total Assets	$84,520
31
32		Liabilities and Stockholders' Equity
33		Liabilities
34		Accounts Payable	$21,500
35		Salaries and Wages Payable	$6,820
36		Total current Liabilities		$28,320
37		Stockholders' Equity
38		Common Stock	$12,000
39		Retained Earnings	$44,200
40		Total Shareholders Equity		$56,200
41		Total Liabilities and Stockholders' Equity		$84,520
42