Question

Supplie Buildings Advertising expense Equipment Purchase factory for operations. Pay for cost of advertising. Purchase equipment for operations Requir Calcula P1-5B 7.Interest expense Pay for cost of interest. Purchase supplies on credit. Distribute cash to stockholders. Borrow from the bank. Accounts payable 9Dividends 10. Notes payable Required: For each transaction, indicate whether the related account would be classified in the balance sheet as (a) an asset, (tb) a liability, or (c) stockholders' equity; in the income statement as (d) a revenue or (e) an expense; or in the statement of stockholders' equity as (0 a dividend. P1-3B Gator Investments provides financial services related to investment selections, retirement planning, and general insurance needs. For the current year, the company reports the following amounts: Prepare financial statements (L01-3) Advertising expense Buildings Salaries expense Accounts payable Cash $33,500 Service revenue $127.600 3,500 15,500 27,000 30,000 150,000 nterest expense 65,100 6,400 5,500 Utilities expense Equipment Notes payable

Answer 1

income statement
revenue		127600
less expenses
salaries expense		65100
utilities expense		15500
advertising		33500
interest expense		3500
net income		10000
balance sheet
assets
cash		5500
equipment		27000
building		150000
total of assets		182500
Liabilities and shareholders equity
Liabilities
accounts payable	6400
notes payable	30000
total of liabilities		36400
shareholders equity
common stock	111000
retained earning	35100
total of shareholders equity		146100
total of liabilities and shareholders equity		182500
shareholders equity
beginning balance of common stock	100000
common stock issued	11000
total common stock		111000
beginning balance of retained earning	30300
net income	10000
less dividend paid	5200
year end balance in retained earning		35100
total of shareholders equity		146100