Question

The accounts of Fulton Digital Services Company prior to the year-end adjustments follow (Click the icon to view the selected accounts and balances.) (Click the icon to view the adjustment data.) (Click the icon to view the list of information requested.) Requirement 1. Without opening any accounts, making any journal entries, or using a work sheet, provide Russell with the requested information. The business is not subject to income tax. a. Calculate net income for the year covered by these data. 0 Data Table 13,000 45,500 14,000 160,000 35,000 Cash ......... .........$ Accounts receivable ........ Supplies Prepaid Insurance ......... Building Accumulated depreciation- building Land Accounts payable ........... Salary payable Unearned service revenue 13,000 Common stock ......... S 7,000 Retained earnings ....... 4,700 Dividends declared ...... 3,000 Service revenue ........ 104,000 Salary expense .......... Depreciation expense- 13,800 building 54,000 Supplies expense 6,500 Insurance expense...... Advertising expense...... 5,500 Utilities expense ........ Net Income b. Calculate total assets. Assets 7,500 2,100 Print Done Less: Total Assets

Answer 1

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Fulton Digital Services Company
Answer a- Net Income calculation
Income Statement	Amount $
Service revenue	160,000.00
Less:
Salary Expense	35,000.00
Advertising Expense	7,500.00
Utilities Expense	2,100.00
Net Income	115,400.00
Answer b- Total Assets calculation
Assets	Amount $	Amount $
Cash		13,000.00
Accounts Receivable		7,000.00
Supplies		4,700.00
Prepaid Insurance		3,000.00
Land		54,000.00
Buildings	104,000.00
Less: Accumulated Depreciation- Buildings	13,800.00	90,200.00
Total Assets		171,900.00
Answer c- Total Liabilities calculation
Liabilities	Amount $
Unearned Revenue	5,500.00
Accounts Payable	6,500.00
Total Liabilities	12,000.00
Answer d- Stockholder's Equity calculation
Statement of Retained Earnings	Amount $
Opening Balance	45,500.00
Add: Net Income	115,400.00
Less: Dividends	14,000.00
Closing Balance	146,900.00
Common Stock	13,000.00
Retained Earnings	146,900.00
Stockholder's Equity	159,900.00
Answer e
Total Assets= Total Liabilities + Stockholder's Equity
Total Assets= 12,000+ 159,900
Total Assets= 12,000+ 159,900
Total Assets= $ 171,900
This is same as Answer c. Hence Proved.