Question

5. Prepare an Income Statement and a Balance Sheet from a trial balance. Using the information from the trial balance of Barger Company, prepare an income statement and balance sheet. (Hint: Prepare the income statement first, then separately calculate ending retained earnings, and lastly prepare the balance sheet) Debit Credit Cash 16,000 Accounts Receivable 14,000 Prepaid Rent Land 10,000 30,000 10,000 5,000 15,000 38,000 12,000 Unearned Revenue Salaries Payable Common Stock Beginning Retained Earnings Service Revenue Salaries Expense Rent Expense 5,000 2,000 Dividends 3,000 80,000 80,000 fees earned prepaid rent Salaries Expense Rent Expense Total operation expense 10,000 5,000 2,000 17,000 Net Income

Answer 1

5.

Barger Company
Income Statement
Service revenue		12000
Salaries expense	5000
Rent expense	2000
Total operation expense		7000
Net income		5000

Ending Retained earnings = Beginning retained earnings + Net income - Dividends = $38000 + $5000 - $3000 = $40000

Barger Company
Balance Sheet
Assets
Cash	16000
Accounts receivable	14000
Prepaid rent	10000
Land	30000
Total assets	70000
Liabilities and Equity
Unearned revenue	10000
Salaries payable	5000
Total liabilities	15000
Common stock	15000
Retained earnings	40000
Total stockholders' equity	55000
Total liabilities and stockholders' equity	70000

Per HOMEWORKLIB RULES the first question has been answered. Please post the remaining questions separately. Thank you.