Question

Saved Help Save & E Chec On December 31, 2021, Fighting Okra Cooking Services reports the following revenues and expenses. Service revenue Postage expense Legal fees expense points $76,000 1,550 2,450 Rent expense Salaries expense Supplies expense 10,700 25,000 15,000 18 02:54:32 brir w In addition, the balance of common stock at the beginning of the year was $250,000, and the balance of retained earnings was $34,000. During the year, the company issued additional shares of common stock for $26,000 and paid dividends of $12,000. Required: eBook 1. Prepare an income statement. 2. Prepare a statement of stockholders' equity Print Complete this question by entering your answers in the tabs below. References Income Statement Stmt of Stockholders Equity Prepare an Income Statement. NETT FIGHTING OKRA COOKING SERVICES Income Statement For the Year Ended December 31, 2021 Expenses: Total Expenses Stmt of Stockholders Equity > Income 3 of 8 Next >

Answer 1

1) Income statement

for the year ended December 31,2021

Revenue
Service revenue		76000
Expense
Postage expense	1550
Legal fees expense	2450
Rent expense	10700
Salaries expense	25000
Supplies expense	15000
Total expense		54700
Net income		21300

2) Statement of Stockholder's equity

	Common Stock	Retained earnings	Total Stockholder's equity
Beginning balance	250000	34000	284000
Addition of Common Stock	26000		26000
Net income		21300	21300
Dividends		-12000	-12000
Ending balance	276000	43300	319300