Question

The Crystal Consulting Corporation is a financial planning firm, which provides consulting services and estate planning, for wealth management clients. As of December 31, 2019, the end of the corporation's financial period the accountants have prepared an adjusted trial balance as follows: Crystal Consulting Corporation Adjusted Trial Balance December 31, 2019 CREDIT DEBIT 10.800 48.000 1.050 550 98.000 400,000 217,300 101,000 ACCOUNT TITLE Cash Accounts Receivable Prepaid Insurance Supplies Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation- Equipment Accounts Payable Salaries & Wages Payable Unearned Rent Common Stock Retained Earnings Dividends Fees Earned Rent Revenue Salaries & Wages Expense Advertising Expense Utilities Expense Depreciation Expense-Building Repairs Expense Depreciation Expense-Equipment Insurance Expense Supplies Expense Misc. Expense 89,900 15,700 5,000 1,000 75.000 128,100 10,000 372,800 1,100 163 100 21,700 16,400 12.000 8,850 4.800 3,150 2.100 4,320 905, 900 SO5.900 Based on the above account balances: please prepare the following financial statements (please see rubric for points and grading): 1. Income Statement 2. Statement of Stockholder's Equity 3. Balance Sheet

Answer 1

Crystal Consulting Corporation
Income Statement
December 31, 2019
Revenues
Fees earned	$ 372,800
Rent revenue	$      1,100
Total revenues		$ 373,900
Less: Expenditure
Salaries and wages expense	$ 163,100
Advertising expense	$    21,700
Utilities expense	$    16,400
Depreciation expense - Building	$    12,000
Repairs expenses	$      8,850
Depreciation expense - Equipment	$      4,800
Insurance expense	$      3,150
Supplies expense	$      2,180
Misc. expense	$      4,320
		$ 236,500
Net Income		$ 137,400

Crystal Consulting Corporation
Statement of Stockholders' equity
December 31, 2019
Common Stock		$    75,000
Retained earnings
Beginning balance	$ 128,100
Add: Current year net income	$ 137,400
Less: Dividends	$ (10,000)
Ending Retained earnings		$ 255,500
Total stockholders' equity		$ 330,500

Crystal Consulting Corporation
Balance Sheet
At December 31, 2019
Assets
Cash		$    10,800
Accounts Receivables		$    48,000
Prepaid insurance		$      1,050
Supplies		$          550
Total current assets			$    60,400
Property, Plant and Equipment
Land		$    98,000
Building	$   400,000
Accumulated depreciation—Building	$ (217,300)	$ 182,700
Equipment	$   101,000
Accumulated depreciation—Equipment	$   (89,900)	$    11,100
Total property, plant and equipment			$ 291,800
Total Assets			$ 352,200
Liabilities
Current Liabilities
Accounts payable		$    15,700
Salaries and wages payable		$      5,000
Unearned rent		$      1,000
Total current liabilities			$    21,700
Shareholders' equity
Common stock		$    75,000
Retained earnings		$ 255,500
Total Shareholders' equity			$ 330,500
Total liabilities and shareholders' equity			$ 352,200

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