Question

Required information [The following information applies to the questions displayed below. The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below. Credit Debit $ 10,500 135,800 4,589 22,500 250,000 Accounts Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Accounts Payable Salaries Payable Interest Payable Notes Payable (due in two years) Common Sto Retained Earnings Service Revenue Salaries Expense Rent Expense Depreciation Expense Interest Expense Totals $120,000 10,500 9,500 3,500 25,000 150,000 45,000 350,000 250,000 12,500 25,000 3,500 $713,500 $713,500 Required: 1. Prepare an income statement for the year ended December 31, 2021. FIGHTIN' BLUE HENS CORPORATION

Answer 1

1.

FIGHTIN'BLUE HENS CORPORATION
Income Statement
For the Year Ended December 31, 2021
Revenues:
Service revenue		350,000
Total revenue		350,000
Expenses:
Salaries expense	250,000
Rent expense	12,500
Depreciation expense	25,000
Interest expense	3,500
Total expenses		-291,000
Net Income		$59,000

2.

FIGHTIN'BLUE HENS CORPORATION
Statement of Retained Earnings
For the Year Ended December 31, 2021
	Common Stock	Retained earnings	Total stockholders equity
Balance at January 1	150,000	45,000	195,000
Add:Net Income		59,000	59,000
Less:Dividends		0	0
Balance at December 31	$150,000	$104,000	$254,000

3.

FIGHTIN'BLUE HENS CORPORATION
Balance Sheet
For the Year Ended December 31, 2021
Assets	Amount	Liabilities	Amount
Current Assets:		Current Liabilities:
Cash	10,500	Accounts payable	10,500
Accounts receivable	135,000	Salaries payable	9,500
Supplies	22,500	Interest payable	3500
Prepaid rent	4,500	Total Current Liabilities	23,500
Total Current Assets	172,500	Long term liabilities:
Long term assets:		Notes payable	25,000
Equipment                                     250,000		Total liabilities	48,500
Less: Accumulated depreciation- 120,000		Stockholders Equity:
Total long term assets	130,000	Common stock	150,000
		Retained earnings	104,000
		Total stockholders equity	254,000
Total Assets	$302,500	Total Liabilities & Stockholders Equity	$302,500

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