Question

Based on the following trial balance for RJ Dio Metal Shop, prepare an income statement and a statement of owner's equity for the year ended December 31, 2019 and a classified balance sheet at December 31, 2019. Ru Dio made no investments in 2019. Use the designated space in the Solution Packet (30 points). 25,000 21,000 8,000 6,000 75,000 30,000 200,000 RJ Dio Metal Shop Adjusted Trial Balance December 31, 2019 Cash Accounts Receivable Prepaid Expense Supplies Equipment Accumulated Depreciation - Equipment Building Accumulated Depreciation - Building Accounts Payable Unearned Fabrication Revenue Long-term Debt RJ Dio, capital RJ Dio, withdrawals Fabrication Revenue Depreciation Expense Supplies Expense Wages Expense Insurance Expense Totals 20,000 10,000 9,000 150,000 50,000 5,000 175,000 25,000 30,000 45,000 4,000 444,000 444,000

Answer 1

Preparing Income Statement, Statement of Owner's Equity and Balance Sheet:-

RJ Dio Metal Shop

Income Statement

For the Year Ended December 31,2019

Accounts	Amount	Amount
Revenue:-
Fabrication Revenue	$175,000
Total Revenue		$175,000
Less:- Expenses
Depreciation Expense	$25,000
Supplies Expense	30,000
Wages Expense	45,000
Insurance Expense	4,000
Total Expenses		($104,000)
Net Income		$71,000

RJ Dio Metal Shop

Statement of Owner's Equity

For the Year Ended December 31,2019

Accounts	Amount
RJ Dio, Capital, Beginning	$50,000
Add:- Net Income	71,000
	$121,000
Less:- RJ Dio, Withdrawals	(5,000)
RJ Dio, Capital, Ending	$116,000

RJ Dio Metal Shop

Balance Sheet

December 31,2019

Accounts	Amount	Amount
Assets:-
Current Assets:-
Cash	$25,000
Accounts Receivable	21,000
Prepaid Expense	8,000
Supplies	6,000
Total Current Assets		$60,000
Property Plant and Equipment:-
Equipment	$75,000
Less:- Accumulated Depreciation, Equipment	(30,000)
Building	200,000
Less:- Accumulated Depreciation, Building	(20,000)
Total Property Plant and Equipment		$225,000
Total Assets		$285,000
Liabilities and Owner's Equity:-
Liabilities:-
Current Liabilities:-
Accounts Payable	$10,000
Unearned Fabrication Revenue	9,000
Total Current Liabilities		$19,000
Long-term Liabilities:-
Long-term Debt	$150,000
Total Long-term Liabilities		$150,000
Owner's Equity:-
RJ Dio, Capital, Ending	$116,000
Total Owner's Equity		$116,000
Total Liabilities and Owner's Equity		$285,000