Question

Credits $ BOILERMAKER UNLIMITED Adjusted Trial Balance December 31, 2021 Accounts Debits Cash $ 15,300 Accounts Receivable 24,300 Supplies 31,300 Prepaid Insurance 6,300 Equipment 537,500 Accumulated Depreciation Accounts Payable Salaries Payable Utilities Payable Notes Payable (due in 5 years) Common Stock Retained Earnings Dividends 25,300 Service Revenue-new construction Service Revenue-remodeling Salaries Expense 153,000 Supplies Expense 278,000 Depreciation Expense 43,000 Insurance Expense 24,300 Utilities Expense 41,300 Interest Expense 7,800 Service Fee Expense 66,000 Totals $1,253,400 172,000 30,300 27. 309 4.300 130,000 165,000 50, 500 415,000 259,000 $1,253,400 Required: 1. Prepare an income statement for the year ended December 31, 2021 2. Prepare the statement of stockholders' equity for the year ended December 31, 2021, note that during the year the company issued additional common stock for $23,000. This amount is included in the amount for Common Stock in the adjusted trial balance. 3. Prepare the classified balance sheet for the year ended December 31, 2021.

Answer 1

Solution:

1.

Bookmaker Unlimited

Income Statement

For the Year Ended December 31, 2021

Service revenue:
New Construction	$415,000
Remodel	$259,000
Total revenue		$674,000
Expenses:
Salaries	$153,000
Supplies	$278,000
Depreciation	$43,000
Insurance	$24,300
Utilities	$41,300
Interest	$7,800
Service fee	$66,000
Total expenses		$613,400
Net income		$60,600

2.

Boilmaker Unlimited

Statement of Stockholders'equity

For the Year Ended December 31,2021

	Common Stock	Retained Earnings	Total Stockholders'Equity
Balance at January 1	$142,000	$50,500	$192,500
Issuance of common stock	$23,000	0	$23,000
Add: net income for 2021	0	$60,600	$60,600
Less: dividends	0	-$25,300	- $25,300
Balance at December 31	$165,000	$85,800	$250,800

3.

Boilmaker Unlimited

Balance Sheet

December 31,2021

Assets:		Liabilities:
Current assets:		Current liabilities:
Cash	$15,300	Account payable	$30,300
Account receivable	$24,300	Salaries payable	$27,300
Supplies	$31,300	Utilities payable	$4,300
Prepaid insurance	$6,300
Total current assets	$77,200	Total current liabilities	$61,900
		Long term liabilities:
Long term assets:		Notes payable	$130,000
Equipment	$537,500	Stockholder's equity:
Accumulated depreciation	-$172,000	Common Stock	$165000
		Retained earnings	$85,800
		Total stockholders'equity	$250,800
Total assets	$442,700	Total liabilities and stockholders'equity	$442,700