Question

Please answer questions 1-3!

The practice problem includes the following: A B E F G Lamp Light Company 2 End-of-Period Spreadsheet 3 For the Year Ended December 31, 2018 4 Unadjusted Adjusted 5 Trial Balance Adjustments Trial Balance 6 Account Title Dr. Cr. Dr. Cr. Dr. Cr. 7 8 Cash 10,800 10.800 9 Accounts Receivable 38,900 50,200 10 Prepaid Insurance 4,200 11,300 3,000 1,200 11 Supplies 2,730 2.250 480 12 Land 98,000 98,000 13 Building 400,000 400,000 14 Accum. Depr.-Building 205,300 10.100 215,400 15 Equipment 101,000 101,000 16 Accum. Depr.-Equipment 85,100 6,680 91,780 17 Accounts Payable 15,700 15,700 18 Salaries & Wages Payable 4.900 4,900 19 Uneamed Rent 2,100 1,300 800 20 Common Stock 75,000 75,000 21 Retained Earnings 128,100 128.100 22 Dividends 10,000 10,000 23 Fees Earned 363,700 11,300 375.000 24 Rent Revenue 1,300 1,300 25 Salaries & Wages Expense 163, 100 4,900 168,000 26 Advertising Expense 21,700 21.700 27 Utilities Expense 11,400 11,400 28 Depr. Exp.-- Building 10,100 10,100 29 Repairs Expense 8,850 8,850 30 Depr. Exp.-Equipment 6.680 6.680 31 Insurance Expense 3.000 3,000 32 Supplies Expense 2.250 2,250 33 Misc. Expense 4320 4,320 34 875 000 875.000 39530 39,530 907.980 907.980 35 1. Prepare an income statment for the year ended December 31 2. Prepare a retained earnings statement for the year ended December 31. 3. Prepare a balance sheet as of December 31.

Answer 1

1) 2) Lamp & Light Company Statement of Retained Earnings For The Year Ended December 31, 2018 Retained Earnings, January 1, 2018 Add: Net Income Less: Dividends Retained Earnings, December 31, 2018 $128,100 $140,000 (Ref: Income Statement] $10,000 $258,100 376,300 Lamp & Light Company Income Statement For The Year Ended December 31, 2018 Revenues: Fees Earned 375,000 Rent Revenue 1,300 Total Revenues Expenses: Salaries and Wages Expense 168,000 Advertising Expense 21,700 Utilities Expense 11,400 Depreciation Expense (Building) 10,100 Repairs Expense 8,850 Depreciation Expense (Equipment) 6,680 Insurance Expense 3,000 Supplies Expense 2,250 Miscellaneous Expense 4,320 Total Expenses Net Income 236,300 140,000

3) Lamp & Light Company Balance Sheet December 31, 2018 Liabilities & Shareholders' Equity Current Liabilities: 10,800 Accounts Payable 50,200 Salaries and Wages Payable 1,200 Unearned Rent 480 Total Liabilities 62,680 15,700 4,900 800 21,400 Assets Current Assets: Cash Accounts Receivable Supplies Prepaid Insurance Total Current Assets Property, Plant and Equipment: Land Building Less: Accum. Dep. - Building Equipment Less: Accum. Dep. - Equipment Property, Plant and Equipment, Net Total Assets 98,000 Shareholders' Equity: Common Stock Retained Earnings Total Shareholders' Equity 75,000 258,100 184,600 400,000 -215,400 101,000 -91,780 [Ref: Statement of Ret. Earnings] 333,100 9,220 291,820 354,500 Total Liabilities & Shareholders' equity 354,500