Question

Required information [The following information applies to the questions displayed below.) The December 31, Year 1, adjusted trial balance for a company is presented below. Credit Debit $ 10,700 137,000 4,700 23,500 270,000 Accounts Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Accounts Payable Salaries Payable Interest Payable Notes Payable (due in two years) Common Stock Retained Earnings Service Revenue Salaries Expense Rent Expense Depreciation Expense Interest Expense Totals $ 122,000 10,700 9,700 3,700 27,000 170,000 47,000 370,000 270,000 13,500 27,000 3,700 $760,100 $760,100

Answer 1

Income Statement For the year ended December 31, Year 1
Revenues:
- Service Revenue		$ 370,000
Expenses:
- Salaries Expense	$ 270,000
- Rent Expense	$ 13,500
-Depreciation Expense	$ 27,000
- Interest Expense	$ 3,700
Total Expenses		($ 314,200)
Net Income		$ 55,800
Statement of Stockholders' Equity For the year ended December 31, Year 1
	Common Stock	Retained Earnings	Total Stockholders' Equity
Balance at January 1	$ 0	$ 47,000	$ 47,000
Add:Net Income		$ 55,800	$ 55,800
Less:Dividends Paid		$ 0	$ 0
Balance at December 31	$ 0	$ 102,800	$ 102,800
CORNHUSKER COMPANY Balance Sheet December 31,2021
Assets		Liabilities
Current Assets :		Current Liabilities:
Cash	$ 10,700	Accounts Payable	$ 10,700
Accounts Receivable	$ 137,000	Salaries Payable	$ 9,700
Prepaid rent	$ 4,700	Interest Payable	$ 3,700
Supplies	$ 23,500	Long term liabilities :
Total Current Assets	$ 175,900	Notes Payable	$ 27,000
		Total Liabilities	$ 51,100
Property palnt and Equipment:
Equipment	$ 270,000
Less: Accumulated Depreciation	($ 122,000)	Stockholders' Equity
Total Property palnt and Equipment	$ 148,000	Common Stock	$ 170,000
		Retained Earnings	$ 102,800
		Total Stockholders' Equity	$ 272,800
Total Assets	$ 323,900	Total Liabilities and Stockholders' Equity	$ 323,900