Question

Income Statement, Statement of Stockholders' Equity, and Balance Sheet Napolean Corporation started business on January 1, 2016. The following information was compiled by Napolean's accountant on December 31, 2016: Sales Revenue Expenses Dividends Cash Accounts Receivable Inventory $18,000 Equipment, net 10,800 Building, net 2,700 Accounts Payable 1,350 Notes Payable 2,250 Common Stock 2,700 Retained Earnings $13,500 36,000 3,600 29,700 18,000 ? Required You have been asked to assist the accountant for the Napolean Corporation in preparing year-end financial statements. Use the above information to prepare an income statement, statement of stockholders' equity, and a balance sheet as of December 31, 2016. Do not use negative signs with your answers unless otherwise noted. NAPOLEAN CORPORATION Income Statement For Year Ended December 31, 2016 Sales Revenue $ Net income $

Answer 1

NAPOLIEN CORPORATION

Income Statement

For Year Ended December 31,2016

Sales Revenue	18000
Less: Expenses	10800
Net Income	$7200

NAPOLIEN CORPORATION

Statement of Stockholder's Equity

For Year Ended December 31,2016

	Common Stock	Retained Earnings	Total
Balance, January 1,2016	18000	-	18000
Add: Net Income for 2016	-	7200	7200
Add: Issuance of common stock	-	-
Less: Dividends paid		(2700)	(2700)
Balance, December 31,2016	$18000	$4500	$22500

NAPOLIEN CORPORATION

Balance Sheet

December 31,2016

Assets
Cash		1350
Accounts Receivable		2250
Inventory		2700
Building Net		36000
Equipment net		13500
Total Assets		$55800
Liabilities and Stockholder's Equity
Liabilities
Accounts Payable	3600
Notes Payable	29700
Total Liabilities		33300
Stockholder's Equity
Common Stock	18000
Retained Earnings	4500
Total Stockholder's Equity		22500
Total Liabilities and stockholder's Equity		$55800