Question

On December 31, 2021, Fighting Okra Cooking Services reports the following revenues and expenses. Service revenue Postage expense Legal fees expense $89,000 2,200 3,100 12,000 38,000 21,500 Rent expense Salaries expense Supplies expense In addition, the balance of common stock at the beginning of the year was $900,000, and the balance of retained earnings was $60,000. During the year, the company issued additional shares of common stock for $39,000 and paid dividends of $38,000. Required: 1. Prepare an income statement. 2. Prepare a statement of stockholders' equity. Complete this question by entering your answers in the tabs below. Stmt of Stockholders Income Statement Equity Prepare a Statement of Stockholders' Equity. FIGHTING OKRA COOKING SERVICES Statement of Stockholders' Equity For the Year Ended December 31, 2021 Total Retained Common Stock Stockholders' Earnings Equity Beginning Balance Ending Balance Income Statement

Answer 1

1)

FIGHTING OKRA COOKING SERVICES
Income Statement
For the Year Ended December 31, 2021
Service revenue		$89000
Less: Expenses:
Rent expense	12000
Postage expense	2200
Salaries expense	38000
Legal fees expense	3100
Supplies expense	21500
Total expense		(76800)
Net income		$12200

2)

FIGHTING OKRA COOKING SERVICES
Statement of Stockholders' Equity
For the Year Ended December 31, 2021
	Common Stock	Retained Earnings	Total Stockholders' Equity
Beginning Balance	$900000	$60000	$960000
Add: Issuance of common stock	39000	-	39000
Add: Net income	-	12200	12200
Less: Dividends paid	-	(38000)	(38000)
Ending balance	$939000	$34200	$973200