Question

The following is the adjusted trial balance of Marie, Inc., at December 31, 2018, the end of the current year. The retained earnings balance was $11,500 at January 1, 2018, the beginning of the current year.

Marie, Inc.

Adjusted Trial Balance

December 31, 2018

Accounts	Debit	Credit
Cash	$83,600
Accounts Receivable	29,000
Prepaid Insurance	3,500
Office Supplies	3,200
Building	207,000
Accumulated Depreciation—Building		$26,500
Land	47,000
Accounts Payable		25,000
Salaries Payable		5,000
Unearned Revenue		27,000
Mortgage Payable		103,000
Common Stock		16,000
Retained Earnings		11,500
Dividends	5,000
Service Revenue		290,000
Salaries Expense	62,500
Rent Expense	47,000
Depreciation Expense—Building	6,200
Supplies Expense	2,000
Insurance Expense	5,000
Interest Expense	3,000
Total	$504,000	$504,000

Requirements

1.	Prepare Marie, Inc.’s income statement for the year ended 12/31/2018 ( Net Income = $164,300)
2.	Prepare the statement of retained earnings for the year ended 12/31/2018 (RE ending balance = $170,800)
3.	Prepare the balance sheet as of 12/31/2018 (Total current assets = $119,300) (Total assets = $346,800) (Total liabilities = $160,000) (Total SE = $186,800)

Answer 1

1 $ 290,000 Marie, Inc. Income statement For the Year Ended December.31, 2018 Revenue Service Revenue $ 290,000 Total Revenue Expenses : Salaries Expense $ 62,500 Rent Expense $ 47,000 Depreciation Expense - Building $ 6,200 Supplies Expense $ 2,000 Insurance Expense $ 5,000 Interest Expense $ 3,000 Total Expenses Net Income $ 125,700 164,300 $ 2 Marie, Inc. Statement of Retained Earnings For the Year Ended December.31, 2018 Retained Earnings January 1,2018 $ 11,500 Add: Net Income $ 164,300 $ 175,800 Less: Dividends $ 5,000 Retained Earnings December 31, 2018 $ 170,800 3 Marie, Inc. Balance Sheet

$ 83,600 $ 29,000 $ 3,500 $ 3,200 $ 119,300 47,000 180,500 $ 227,500 $ 346,800 December.31,2018 Assets Current assets : Cash Accounts Receivables Prepaid Insurance Office Supplies Total Current assets Property, plant and Equipment Land $ Buildings $ 207,000 Less: Accumulated Depreciation - Buildings $ 26,500 $ Total Assets Liabilities and Stockholdes' Equity Current Liabilities Accounts Payable Salaries Payable Unearned Revenue Total current liabilities Long term liabilities Mortagage Payable Total Liabilities Stockholders' Equity Common stock $ Retained Earnings $ Total stockholders Equity Total Liabilities and Shareholders Equity $ $ $ $ 25,000 5,000 27,000 57,000 $ 103,000 $ 160,000 16,000 170,800 $ 186,800 $ 346,800