Question

4:56 Pulse MBA520_Financial Statement Review_Word Template Problem 1. Preparation of Basic Financial Statements Below is an alphabetical list of account balances of Series Selec ion of December 31, 2013 and 2012 prior to the preparation of doing entries and financial statements LIC I AL REQUIRED A = (20 points totall- ricom te voor een enth Lay La Revue 2 Column 2 - Financial Statementdeniyeach out 1.. become Statements or Statement of Retained Barne. Sheet the .. Type of D C 35.500 Accounts Payable Accounts Receivable Accumulated Depreciation, opment Allowance for Doub s cash and Cash Equivalents Common Stock, no ar Cost of Goods Sold 2100 11.00 62,200 Depreciation Expense Dividends Equipment Income Tax Expense Insurance Expense 29.300 2000 100 2 2100 Notes Payable Other Operating Expense Predinurance Scarpe Salary Payable Umeared Revenue REQUIREMENTB: Using the data from the previous page, prepare the 2019 statements below as follows: 1 - Income Statement (10 points. 2. Statement of Retained Earnings (10 pointsl. 3 - Comparative Balance Sheet (10 points) and 4-Statement of Cash Flows using the Indirect Method (10 points)

Answer 1

A.

Account Titles	Type of Account	Financial Statement
Accounts Receivable	A	BS
Accounts Payable	L	BS
Accumulated Depreciation: Equipment	CA	BS
Allowance for Doubtful Accounts	CA	BS
Cash and Cash Equivalents	A	BS
Common Stock-No par	EQ	BS
Cost of Goods Sold	EXP	IS
Depreciation Expensse	EXP	IS
Dividends	EQ	RE
Equipment	A	BS
Income Tax Expense	EXP	IS
Insurance Expense	EXP	IS
Inventories	A	BS
Land	A	BS
Notes Payable	L	BS
Other Operating Expense	EXP	IS
Prepaid Insurance	A	BS
Retained Earnings	EQ	BS
Salary Expense	EXP	IS
Salaries Payable	L	BS
Sales Revenue	R	IS
Unearned Revenue	L	BS

B.

1.

Serious Supply Corporation Income Statement For the year ended December 31, 2019
Sales Revenue		$ 438,000
Cost of Goods Sold		185,100
Gross Profit		252,900
Operating Expenses
Salary Expense	$ 76,900
Insurance Expense	24,600
Depreciation Expense	16,100
Bad Debt Expense	100
Other Operating Expenses	50,100
Income Tax Expense	29,300
Total Operating Expense		197,100
Net Income		$ 55,800

2.

Serious Supply Corporation Statement of Retained Earnings For the year ended December 31, 2019
Retained Earnings, December 31, 2018	$ 35,095
Add: Net Income	55,800
Less: Dividends	62,200
Retained Earnings, December 31, 2019	$ 28,695