Question

• For the following corporation ABC, prepare Income statement, Retained Earnings statement, and Balance sheet statement from the following information data for the year ended Dec,31, 2018.

Service revenue	$51000
Account receivable	$12000
Accounts payable	$6000
Building rental expenses	$27000
Notes payable	$15000
Common stock	$30000
Retained earnings	?
Equipment	$48000
Insurance expense	$3000
Supplies	$3600
Supplies expense	$600
Cash	$6000
Dividends	$1800

Answer 1

ABC Corporation Income Statement for the year ending 31st December 2018 :- Particulars Amount $ Amount $ Revenues :- 51,000 27,000 Service Revenue Less: Operating expenses Less: Administrative expenses Building Rent expense Insurance expense Supplies expense Total Operating expenses Net Income 3,000 600 30,600 20,400 Statement of Retained earnings as on 31st December 2018 :- Particulars Amounts Beginning balance Add: Net Income 20,400 20,400 Less: Dividends 1,800 Enidng balance 18,600 Balance Sheet as at 31st December 2018 :- Assets Amount $ Amounts Current Assets :- Cash 6,000 Accounts Receivable 12,000 3,600 Supplies Total current assets 21,600 Non-Current Assets :- Property, Plant and Equipment :: Equipment Net, Property, Plant and Equipment Total Assets 48,000 48,000 69,600 Amounts Amounts Liabilities and Shareholders equity Current Liabilities :- 6,000 Accounts Payable Notes Payable Total current liabilities 15,000 21,000 Non-Current Liabilities Total Liabilities 21,000 Shareholders Equity :: Common Stock 30,000 18,600 Retained earnings Total Owners equity Total Liabilities and Shareholders Equity 48,600 69,600 Retained earnings is $ 18,600/.