Question

Part 3: Income Statement: Below are the accounts for Ben Inc. The company just completed its fourth year of operations ended December 31, 2019. Prepare the (1) Income Statement and the (2) Balance Sheet for Ben Inc. Use the provided tables and add proper headings when making these statements. Cad Accounts Payable Service Fees Revenue Supplies Expense Insurance Expense Retained Eamines, 1/1/19 Building Rent Expense Salaries Expense Supplies Inventory Maintenance Expense Contributed Capital Notes Payable Accounts Receivable Dividends (declared and paid during 2019) 213,000 34,000 275,000 8,000 4.000 41.000 80.000 10,000 $6,000 32,000 7.000 46,000 32,000 16,000 2.000 Balance Sheet: Is BALANCE SHEET Ben Inc. 31-Dec-19 Assets Liabillities

Answer 1

BEN INC., Income Statement For The Year Ended December 31, 2019
Revenue:
Service fees revenue	$275,000
Expenses:
Supplies expense	8,000
Insurance expense	4,000
Rent expense	10,000
Salaries expense	56,000
Maintenance expense	7,000
Total expenses	85,000
Net income (loss)	$190,000

BEN INC., Balance Sheet 31-Dec-19
Assets
Current assets
Cash	$213,000
Accounts receivables	16,000
Supplies inventory	32,000
Total current assets	261,000
Non current assets
Building	80,000
Total assets	341,000
Liabilities and stockholders equity
Liabilities
Accounts payable	34,000
Notes payable	32,000
Total liabilities	66,000
Stockholders equity
Capital	46,000
Retained earnings	229,000
Total liabilities and stockholders equity	$341,000

Retained earnings 31/12/19 = Retained earnings 1/1/19 + Net income - Dividend

Retained earnings 31/12/19 = $41,000+190,000-2,000 = $229,000