Question

prepare an income statement, statement of retained earnings, and balance sheet.

Sharon Silver, Registered Dietician July 31, 2017 Account Titles Balance Dividends $2,300 Unearned Revenues $1,500 Utilities Expense $150 Cash $36,200 Office Supplies $1,800 Rent Expense $500 Accounts Receivable $9,100 Accounts Payable h# $3,300 Retained Earnings (Beginning Balance) $0 Salaries Expense $1,700 Prepaid Insurance $2,000 Equipment $13,000 Notes Payable $30,000 Common Stock $23,150 Service Revenue $8,800

Answer 1

a) Income statement

Revenue
Service revenue	8800
Expense
Utilities expense	150
Rent expense	500
Salaries expense	1700
Total expense	2350
Net income	6450

b) Statement of retained earnings

Beginning balance	0
Net income	6450
Dividend	-2300
Ending balance	4150

c) Balance Sheet

Assets
Current assets
Cash	36200
Account receivable	9100
Office supplies	1800
Prepaid insurance	2000
Total Current assets		49100
Property, plant and equipment
Equipment		13000
Total assets		62100
Liabilities and stockholder's equity
Current liabilities
Account payable	3300
Unearned revenue	1500
Total Current liabilities		4800
Long term liabilities
Notes payable		30000
Total liabilities		34800
Stockholder's equity
Common Stock	23150
Retained earnings	4150
Total Stockholder's equity		27300
Total liabilities and stockholder's equity		62100