Question

I need help with this question please

Please use the following adjusted Trial Balance for Great Adventures, Inc. to complete this assignment. Assume that Great Adventures, Inc. began its operations on January 1, 2019. There were no identifiable transactions in 2018. You are asked to prepare the following statements: Income Statement for the year ending December 31, 2019 Statement of Retained Earnings for the year ending December 31, 2019 Statement of Stockholders Equity for the year ending December 31, 2019 • Balance Sheet at December 31, 2019 • Statement of Cash Flows for the year ending December 31, 2018 Note: For Earnings per Share (EPS) calculations, use 10,000 shares of common stock as the weighted average number of shares outstanding.

Answer 1

Only 4 parts will be answered as per the guidelines-

Income statement

Income Statement For the year ending December 31, 2019 Revenue Merchandise Sales Revenue 27500 Less: Sales Return and allowance 2500 25000 Service Revenue (Clinic) 50,400 Service Revenue (Racing) 17,500 Total Revenue (A) 92900 Less: Operating Expenses Cost of Goods (B) 15,000 Gross Profit (A-B) 77,900 Less: Non operating expense Advertising Expense 1000 Depreciation Expense 8000 Income tax expense 14000 Insurance expense 2400 Interest expense 750 legal fees expense 1500 Miscellaneous expense 1200 Rent expense 800 Salaries expense 2000 Selling expense 5000 Supplies expense (office) 1500 Supplies expense (racing) 2600 40750 Net profit 37,150

Statement of retained earnings & Stockholder equity

Statement of retained earnings For the year ending December 31, 2019 Net income Less: Dividend Paid Retained Earnings 37,150 4000 33,150 Statement of shareholder's equity For the year ending December 31, 2019 Retained earnings Common stock Paid in capital in excess of par Total Balance on January 1 Net income Dividends Balance on December 31 37,150 -4000 3,150 37,150 -4000 53,150 3 10000 10000

Balance Sheet

Amount Amount 2800 14000 Balance Sheet As at December 31, 2019 Liabilities 64200 Accounts Payable 5000 Income tax payable 2000 Interest Payable 2400 Notes Payable 1600 Total Current Liabilities 300 Stockholder's Equity 200 75700 750 Assets Cash Inventory Accounts Receivable Prepaid Insurance Prepaid Rent Supplies (office) Supplies (Racing) Total Current Assets Long term assets Equipment (bikes) Equipment (Kayaks) Less: Accumulated depreciation Total Assets 30000 47550 53,150 12000 21000 8000 100700 Total Liabilities & Stockholder 100700