Question

Cornhusker Company provides the following information at the end of 2021. Cash remaining Rent expense for the year Land that has been purchased Retained earnings Utility expense for the year Accounts receivable from customers Service revenue recognized during the year Salary expense for the year Accounts payable to suppliers Dividends paid to shareholders during the year Common stock that has been issued prior to 2021 Salaries owed at the end of the year Insurance expense for the year Retained earnings at the beginning of the year $ 4,700 6,900 20,000 12,300 4,800 7,100 36,500 13,200 2,150 3,100 15,000 2,350 3,400 7,200 No common stock is issued during 2021. Required: 1. Prepare the income statement for Cornhusker Company on December 31, 2021. 2. Prepare the statement of stockholders' equity for Cornhusker Company on December 31, 2021. 3. Prepare the balance sheet for Cornhusker Company on December 31, 2021.

Answer 1

CORNHUSKER COMPANY Income Statement For the year ended December 31, 2021 Service Revenue 36,500 Expenses: Rent Expense 6,900 Utilities Expense 2$ 4,800 2$ Insurance Expense 3,400 Salaries Expense 13,200 Total Expenses 28,300 Net Income 8,200

CORNHUSKER COMPANY Statement of Stockholders' Equity For the year ended December 31, 2021 Total Stockholders' Retained Earnings Common Stock Equity 7,200 $ Beginning Balance 15,000 $ 22,200 Issuance of common stock 8,200 $ (3,100) $ Add: Net Income Less: Dividends Ending Balance 8,200 (3,100) 15,000 | $ 12,300 $ 27,300

CORNHUSKER COMPANY Balance Sheet December 31, 2021 Liabilities Assets Accounts Payable 20,000 Salaries Owed Fixed Assets 2,150 Land 2,350 Current Assets Cash Total Liabilities 4,700 4,500 Stockholders' Equity 7,100 Common Stock Retained Earnings Accounts Receivable 15,000 12,300 Total Stockholders' Equity 27,300 Total Assets Total Liabilities and Stockholders' Equity $ 31,800 31,800 %24 %24

• Dividend paid account is closed by transferring to retained earnings account.
  • Retained Earnings (debit); dividend paid account (credit)