Question

The following accounts and balances were drawn from the records of Barker Company at December 31, 2018: $ Supplies Cash flow from investing act. Prepaid insurance Service revenue Other operating expenses Supplies expense Insurance expense Beginning common stock Cash flow from operating act. Common stock issued 720 Beginning retained earnings (7,700) Cash flow from financing act. 2,700 Rent expense 77,000 Dividends 41,000 Cash 240 Accounts receivable Prepaid rent 900 Unearned revenue 7,200 5,700 Accounts payable $ 20,000 (5,300) 2,600 4,900 11,300 4,900 7,700 38,000 16,260 20,000 1,200 Land Required Use the accounts and balances from Barker Company to construct an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows (show only totals for each activity on the statement of cash flows). Complete this question by entering your answers in the tabs below. Income Statement SE Balance Sheet Stmt of Cash Flows Use the accounts and balances from Barker Company to construct an income statement. BARKER COMPANY Income Statement For the Year Ended December 31, 2018 Revenue Total revenue $ 0 Expenses

Answer 1

BARKER COMPANY
Income Statement
For the Year Ended December 31, 2018
Revenue
Sales revenue	$77,000
	$0
Total revenue		$77,000
Expenses:
Other operating Expense	$41,000
Supplies Expense	$240
Insurance Expense	$1,200
Rent Expense	$2,600
	$0
Total Expense       [$41,000 + $240 + $1,200 + $2,600]		$45,040
Net income             [Total revenue - Total expenses = $77,000 - $45,040]		$31,960

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BARKER COMPANY
Statement of Changes in Stockholders Equity
For the Year Ended December 31, 2018
Beginning common stock	$900
Plus: Stock issued	$5,700
Ending common stock		$6,600
Beginning retained earnings	$20,000
Plus: Net income             [Refer income statement]	$31,960
Less: Dividends	$4,900
Ending retained earnings		$47,060
Total stockholders equity             [$6,600 + $47,060]		$53,660

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BARKER COMPANY
Balance Sheet
As of December 31, 2018
Assets
Cash	$11,300
Accounts Receivable	$20,000
Supplies	$720
Prepaid Insurance	$2,700
Prepaid rent	$4,900
Land	$38,000
	$0
Total assets		$77,620
Liabilities
Unearned revenue	$7,700
Accounts Payable	$16,260
	$0
Total liabilities		$23,960
Stockholders Equity
Common stock	$6,600
Retained earnings	$47,060
	$0
Total Stockholders Equity		$53,660
Total Liabilities and Stockholders Equity             [$23,960 + $53,660]		$77,620

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BARKER COMPANY
Statement of Cash Flow
For the Year Ended December 31, 2018
Cash flow from operating activities	$7,200
Cash flow from investing activities	($7,700)
Cash flow from financing activites	($5,300)
Net Change in Cash                   [$7,200 - $7,700 - $5,300]	($5,800)
Plus: Beginning Cash balance   [Ending cash balance - Net change in cash = $11,300 - ( - $5,800)]	$17,100
Ending Cash Balance                 [Mentioned in question]	$11,300