Question

A) prepare an income statement and a retained earnings statement for the year

B) prepare a classified statement of financial position at July 31

s. mor E4-17 These financial statement items are for Van Dijk Company NV at year-end 2017. Salaries and wages payable $ 2,040 Notes payable (long-term) Salaries and wages expense 50,700 Cash Utilities expense 22,600 Accounts receivable Equipment 30,000 Accumulated depreciation equip. Accounts payable 4,100 Dividends Service revenue 62,000 Depreciation expense Rent revenue 8,500 Retained earnings (beginning Share capital-ordinary 25,000 of the year) Instructions (a) Prepare an income statement and a retained earnings statement for the year (b) Prepare a classified statement of financial position at July 31. *E4.18 Ranald.

Answer 1

Van Dijk Company
Income Statement
For the Year Ended July 31, 2017
Revenues
Service revenue	62,000
Rent revenue	8,500
Total Revenue		70,500
Expenses
Salaries and Wages expense	50,700
Utilities expense	22,600
Depreciation expense	2,400
Total expenses		75,700
Net income		-5,200
Van Dijk Company
Statement of Retained Earnings
For the Year Ended July 31, 2017
Retained earnings (beginning of the year)		22,700
Add/Less: Net income/loss		-5,200
Less: Dividends		3,000
Retained earnings (end of the year)		14,500
Van Dijk Company
Statement of Financial Position
July 31, 2017
Assets
Equipment	30,000
Less: Accumulated depreciation—equipment	6,000	24,000
Accounts receivable		9,240
Cash		14,200
Total assets		47,440
Equity and Liabilities
Equity
Share capital—ordinary	25,000
Retained earnings	14,500	39,500
Liabilities
Notes payable (long term)	1,800
Accounts payable	4,100
Salaries and wages payable	2,040
Total liabilities		7,940
Total equity and liabilities		47,440