Question

On January 1, 2021, Red Flash Photography had the following balances: Cash, $16,000; Supplies, $8,400; Land, $64,000; Deferred Revenue, $5,400; Common Stock $54,000; and Retained Earnings, $29,000. During 2021, the company had the following transactions:

1.		February		15		Issue additional shares of common stock, $24,000.
2.		May		20		Provide services to customers for cash, $39,000, and on account, $34,000.
3.		August		31		Pay salaries to employees for work in 2021, $27,000.
4.		October		1		Purchase rental space for one year, $16,000.
5.		November		17		Purchase supplies on account, $26,000.
6.		December		30		Pay dividends, $2,400.

The following information is available on December 31, 2021:

1. Employees are owed an additional $4,400 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $5,400 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.

please prepare an income statement, statement of stockholders equity, and classified balance sheet.

Required information Stmt of Income Stockholders Balance Sheet Statement Equity Prepare an income statement. RED FLASH PHOTOGRAPHY Income Statement For the Year Ended December 31, 2021 Expenses: Total Expenses

Answer 1

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RED FLASH PHOTOGRAPHY
Income Statement
For the Year Ended December 31, 2021
Income
Service Revenue		$                                                         78,400
Expenses:
Salaries	$            31,400
Supplies Expense	$            29,000
Rent Expense	$              4,000
Total Expenses		$                                                         64,400
Net Income		$                                                         14,000
RED FLASH PHOTOGRAPHY
Statement of Stockholders' Equity
For the Year Ended December 31, 2021
	Common Stock	Retained Earnings	Total Equity
Balance at Januaray 1	$            54,000	$                                                         29,000	$            83,000
Issue of shares	$            24,000		$            24,000
Net Income		$                                                         14,000	$            14,000
Dividend		$                                                         -2,400	$            -2,400
Balance at December 31	$            78,000	$                                                         40,600	$         118,600
RED FLASH PHOTOGRAPHY
Balance Sheet
December 31, 2021
Assets	Liabilities
Current Assets		Current Liabilities
Cash	$              7,600	Salaries payable	$              4,400
Supplies	$              5,400
Accounts receivables	$            34,000
Prepaid rent	$            12,000
Total current assets	$            59,000	Total current liabilities	$              4,400
Long term assets
Land	$            64,000	Stockholders' Equity
		Common Stock	$            78,000
		Retained Earnings	$            40,600
		Total stockholders' equity	$         118,600
Total assets	$         123,000	Total liabilities and stockholders' equity	$         123,000