Question

Prepare an Income Statement, Statement of Retained Earnings, and Balance Sheet using the following information.

Credit (CR) Debit (DR) 11,000 Cash 5,000 23,500 4,000 12,000 4,000 2,500 3,800 60,000 32,000 29,500 21,000 Accounts Payable Accounts Receviable Rent Expense Unearned Revenue Depreciation Expense Prepaid Insurance Supplies Expense Equipment Accumulated Depreciation - Equipment Cost of Goods Sold Merchandise Inventory Notes Payable Salary Payable Buildings Interest Payable Sales Revenue Interest Expense Supplies Accumulated Depreciation - Buildings Prepaid Insurance Common Stock Retained Earnings Dividends Salary Expense Insurance Expense 43,400 8,300 35,000 1,850 84,000 500 4,800 10,000 2,500 25,000 5,500 12,000 12,100 850 227,050 227,050

Answer 1

Income Statement
Sales revenue	84,000
Expenses:
Cost of goods sold	-29,500
Rent expense	-4000
Depreciation expense	-4000
Supplies expense	-3,800
Interest expense	-500
Salary expense	-12,100
Insurance expense	-850
Total expenses	-54,750
Net Income	$29,250

Statement of Retained Earnings
Beginning retained earnings	5,500
Net Income	29,250
	$34,750
Dividends	-12,000
Retained earnings, Ending	$22,750

Balance Sheet
Assets	Amount	Liabilities + Stockholders Equity	Amount
Current Assets:		Current Liabilities:
Cash	11,000	Accounts payable	5,000
Accounts receivable	23,500	Note payable	43,400
Merchandise Inventory	21,000	Unearned revenue	12,000
Supplies	4,800	Salary payable	8,300
Prepaid insurance	5,000	Interest payable	1,850
Total Current Assets	65,300	Total Current Liabilities	70,550
Plant,Assets :		Stockholders Equity:
Building                                        35,000		Common stock	25,000
Less:Accumulated Depreciation -10,000	25,000	Retained earnings	22,750
Equipment                                  60,000		Total stockholders equity	47,750
Less:Accumulated Depreciation-32,000	28,000
Total Plant Assets	53,000
Total Assets	$118,300	Total Liabilities & Stockholders Equity	$118,300

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