Question

View Policies Current Attempt in Progress These financial statement items are for Carla Vista Co. at year-end, July 31, 2022 Salaries and wages payable Salaries and wages expense Supplies expense Equipment Accounts payable Service revenue Rent revenue Notes payable (due in 2025) Common stock Cash Accounts receivable Accumulated depreciation-equipment Dividends Depreciation expense Retained earnings (beginning of the year) $3,800 59,200 16,900 17,860 3,600 67,800 9,800 3,000 16,000 34,140 11,000 7,400 4,000 4,000 35,700 Prepare an income statement for the year. Carla Vista Co. did not issue any new stock during the year. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es (451)

Answer 1

Answer

   Carla Vista co

Income statement

   For the Year Ended July 31st, 2022

Particulars	$	$
Revenue:
Rent revenue	9,800
Service revenue	67,800
Total revenue		77,600
Expenses:
Depreciation expense	4,000
Salaries and wages expense	59,200
Supplies expense	16,900
Less total expenses		80,100
Net loss		(2,500)

   Carla Vista co

    Statement of retained earnings

For the Year Ended July 31st, 2022

Particulars	$	$
Beginning balance		35,700
Less Dividends	4,000
Less Net loss	2,500
		(6,500)
Ending balance		29,200

Carla Vista co

Balance sheet

        As on 31st July, 2022

Particulars	$	$
Assets
Current assets:
Cash	34,140
Account receivables	11,000
Total current assets		45,140
Non current assets:
Equipment	17,860
Less accumulated depreciation	(7,400)
Net Equipment	10,460
Total non current assets		10,460
Total Assets		55,600
Liabilities and shareholders equity
Liabilities
Current liabilities:
Salaries and wages payable	3,800
Account payable	3,600
Total current liabilities		7,400
Long term liabilities:
Note payable		3,000
Total liabilities		10,400
Shareholders equity:
Common stock	16,000
Retained earnings (Ending balance of the year)	29,200
Total shareholders equity		45,200
Total liabilities and share holder's equity		55,600

The note payable due in 2025 is a long term liability. Net value of equipment is computed by subtracting accumulated depreciation from its gross value of $17,860.

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