Question

Tool Tools Help Mode - Delay View Policies Current Attempt in Progress Skysong, Inc. began operations on January 1, 2017. The following information is available for Skysong, Inc. on December 31, 2017 Accounts payable $ 8,100 Notes payable $ 13,200 Accounts receivable 5.100 Rent expense 13,100 Advertising expense Retained earnings 4.470 6,200 Cash Service revenue 31,200 Common stock 18,100 Supplies 5,000 Dividends 5,600 Supplies expense 1.230 Equipment 29,900

Answer 1

$ 8,100 $ 18,100 Skysong, Inc. Trial Balance As on December 31, 2017 Accounts payable Accounts receivable $ 5,100 Advertising expense $ 4,470 Cash $ 6,200 Common stock Dividends $ 5,600 Equipment $ 29,900 Notes payable Rent expense $ 13,100 Service revenue Supplies $ 5,000 Supplies expense $ 1,230 Totals $ 70,600 $ 13,200 $ 31,200 $ 70,600

• Supplies are stock of consumable in hands. E.g, office supplies. They are written off as supplies expense when they are consumed.
• Dividends are closed to the retained earnings account.
• Notes payable is a promissory note agreeing to pay a sum on a specified date. It is a liability.

$ 31,200 Skysong, Inc. Income Statement For the Year Ended December 31, 2017 Revenue Service revenue Expenses Advertising expense $ 4,470 Rent expense $ 13,100 Supplies expense $ 1,230 Total expenses Net income $ $ 18,800 12,400 b a-b

Skysong, Inc. Retained Earnings Statement For the Year Ended December 31, 2017 Beginning balance Add: Net income $ 12,400 12,400 Less: Dividends $ (5,600) Ending balance $ 6,800

• The retained earnings are the accumulated net income retained after distribution to stockholders.
• Here, retained earnings no beginning balance since this is the first year of operation of Skysong, Inc.

$ $ $ $ $ 6,200 5,100 5,000 29,900 46,200 Skysong, Inc. Balance Sheet As of December 31, 2017 Assets Cash Accounts receivable Supplies Equipment Total assets Liabilities and Stockholders' Equity Liabilities Accounts payable $ 8,100 Notes payable $ 13,200 Total Liabilities Stockholders' Equity Common stock $ 18,100 Retained earnings $ 6,800 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 21,300 $ $ 24,900 46,200