Question

prepare an income statement for the year ending 12/31/19; retained earnings statement for the year ended; classified balance sheet

Accounts Payable Accounts Receivable $5000 21,500 35,000 2000 Accumulated Depreciation - Equipment Additional Paid-in-Capital Common Stock Cash Common Stock Depreciation Expense Dividends paid Equipment Insurance Expense Interest Expense Interest payable Notes payable (due 12/31/23) Prepaid Insurance Rent Expense Retained Earnings Salaries and Wages Payable Salaries Expense Service Revenue Supplies Supplies Expense Unearned Service Revenue 11,350 8,000 7000 10,000 60,000 850 150 150 5000 2500 4000 3500 1300 11,300 71,500 5000 3400 5600

Answer 1

Answer:

Income Statement For the Period Ended 12/31/2019 71,500 Service Revenue Operating Expenses Depreciation Expense Rent Expense Salaries Expense Supplies Expense Insurance Expense Total Operating expenses Operating Income Interest expense Net Income 7,000 4,000 11,300 3,400 850 26,550 44,950 150 44,800 Statement Changes in Retained Earnings For the Period Ended 12/31/2019 Retained Earnings Jan 1, 2019 3,500 Net Income during 2019 44,800 Subtotal 48,300 Dividends (10,000) Retained Earnings Dec 31, 2019 38,300

Assets Current Assets: Cash Accounts receivable Supplies Prepaid Insurance Total Current Assets Classified Balance Sheet As of period Ended 12/31/2019 Liabilities and Stockholders Equity Current Liabilities: 11,350 Accounts payable 21,500 Salaries and wages payable 5,000 Interest Payable 2,500 Unearned Service revenue 40,350 Total current liabilities 5,000 1,300 150 5,600 12,050 Equipment Accumulated Depreciation - Equipm Equipment - net 60,000 (35,000) Long-term Liabilities Notes Payable (due 12/31/23) Total liabilities 5,000 17,050 25,000 Stockholders' Equity: Common Stock Additional Paid-in capital Common stock Retained Earnings Total stockholders' equity 8,000 2,000 38,300 48,300 Total assets 65,350 Total liabilities and stockholders' equity 65.350