Question

Using the following information for ABC Co. to prepare a properly classified income statement, a statement of retained earnings, and a properly classified balanced sheet as of Dec. 31, xxxx.

(all the accounts below are in normal balance)

Accounts payable		$1,100
Accounts receivable		3,900
Building, car wash		39,400
Capital stock		40,000
Cash		800
Dividends		8,500
Equipment, car wash		85,000
Income tax expense		7,000
Miscellaneous expense		9,100
Notes payable-long-term		50,000
Retained earnings,1/1/xxxx		29,700
Service revenue, car wash		230,800
Supplies inventory		4,200
Utilities expense		109,400
Wages expense		84,300

1.         Income Statement

            Total revenues  

            Total expenses  

            Net income       

2.         Retained Earnings

Retained earnings,1/1/xxxx                           

Add: Net Income:                                        

Less: Dividends                      

Retained earnings,12/31/xxxx    

3.       Balance Sheet

            Total current assets                   

            Total long-term assets               

            Total assets                                            

            Total current liabilities              

            Total long-term liabilities          

            Total liabilities                                      

            Common stock                          

            Retained earnings, 12/31/xxxx   

            Total equity                                          

            Total Liabilities and Equity           

Answer 1

1.

Income Statement
Service Revenue	$ 230,800
Less: Expenses
Utilities Expenses	(109,400)
Wages Expenses	(84,300)
Miscellanous Expenses	(9,100)
Income tax Expenses	(7,000)
Net Income	$ 21,000

2. Retained Earnings

Retained Earnings 1/1/XX	$ 29,700
Add: Net Income	$ 21,000
Less: Dividend	$ (8,500)
Retained earnings 12/31/XX	$42,200

3. Balance sheet

Balance Sheet
Current Assets
Cash	$ 800
Account Receivable	$ 3,900
Supplies Inventory	$ 4,200
Total Current Assets		$ 8,900
Long term assets
Building	$ 39,400
Equipment	$ 85,000
Total Long term assets		$ 124,400
Total Assets		$ 133,300
Current Liabilities
Account Payable	$ 1,100
Total Current Liabilities		$ 1,100
Long term liabilities
Notes payable	$ 50,000
Total long term liabilities		$ 50,000
Total Liabilities		$ 51,100
Capital Stock	$ 40,000
Retained Earnings	$ 42,200
Total equity		$ 82,200
Total Liabilites and equity		$ 133,300

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