Question

10) Jeffery Company has just completed operations for the year ended December 31, 2016. This is the second year of operations for the company. The following data have been assembled for the business. $ 6,500 |Accounts Payable Accounts Receivable Cash Common Stock Dividends Equipment Insurance Expense $ 12,200 Office Expense 14,500 Rent Expense 8,200 Retained Earnings, Jan. 1, 2016 9,000 Salaries Expense 13,500 Service Revenue 15,000 Utilities Expense 4,000 9,600 8,300 36,000 84,000 6,200 Prepare the income statement. Use a proper heading. Prepare the statement of retained earnings. Use a proper heading. Prepare the balance sheet. Use a proper heading.

Answer 1

a)
Jeffery Company
Income statement
For the year ended Dec 31, 2016
Revenues:
Service Revenue		$                                                 84,000.00
Expenses:
Office Expense	$    6,500.00
Rent Expense	$    9,600.00
Insurance Expense	$    4,000.00
Salaries Expense	36,000
Utilities Expense	6,200
Total Expenses		$                                                 62,300.00
Net Income		$                                                 21,700.00
b)
Jeffery Company
Statement of Retained Earnings
For the year Ended Dec 31, 2016
Retained Earnings, Jan 1, 2016	$    8,300.00
Add: Net Income	$  21,700.00
Dividends	$ (13,500.00)
Retained Earnings, Dec 31 , 2016	$  16,500.00
c)
Jeffery Company
Balance Sheet
31-Dec-16
Assets		Liabilities
Cash	$    8,200.00	Accounts Payable	$12,200
Accounts Receivable	$  14,500.00	Stockholders' Equity
Equipment	$  15,000.00	Common stock	9,000
		Retained Earnings	$ 16,500.00
		Total Stockholders' Equity	$ 25,500.00
Total Assets	$  37,700.00	Total Liabilities and Stockholders' Equity	$37,700.00