Question

Assume that you are the owner operator of College Park Veterinary Clinic. At the end of the second year of operations (June 30, 2017 the following financial data for the company are available: 123,600 26,000 236,100 15.500 . 141,000 Cash Accounts Receivable Supplies Property and Equipment Other Assets Accounts Payable Notes Payable Other Llabilities Sales Revenue Operating Expenses Selling and Administrative Expenses Advertising and Marketing Expenses Interest Expense Retained Earnings, July 1, 2016 Contributed Capital Dividends 285,000 199,00 24,00 35,000 197.00 Required: 1. Prepare an income statement for the year ended June 30, 2017. (Negative amounts should be indicated by a minus sign COLLEGE PARK VETERINARY CLINIC Income Statement For the Year Ended June 10, 2017 Expenses Total expenses > DELL

Answer 1

Requirement 1:

COLLEGE PARK VETERINARY CLINIC
Income Statement
For the year ended June 30,2017
Sales revenue		$285,000
Expenses:
Operating expenses	$199,700
Selling and Administrative expenses	$46,900
Advertising and marketing expense	$24,800
Interest expense	$6,500
Total expenses		$277,900
Net income		$7,100

Requirement 2:

COLLEGE PARK VETERINARY CLINIC
Statement of retained earnings
For the year ended June 30,2017
Retained earnings, July 1 2016	$35,000
Add: Net income	$7,100
(Less): Dividends	($24,750)
Retained earnings, July 1 2017	$17,350

Requirement 3:

COLLEGE PARK VETERINARY CLINIC
Balance Sheet
For the year ended June 30,2017
Assets
Cash	$7,000
Accounts Receivable	$128,600
Supplies	$26,000
Property and equipment	$236,100
Other assets	$15,500
Total assets	$413,200
Liabilities
Accounts payable	$30,950
Notes payable	$141,000
Other liabilities	$26,900
Total liabilities	$198,850
Shareholders' Equity:
Contributed capital	$197,000
Retained earnings	$17,350
Total stockholders' Equity	$214,350
Total liabilities and stockholders' Equity	$413,200