Question

III. Financial Statement Preparation a. owner deposits $50,000 in a bank account in the name of Company for shares of common stock b. Company received $10,000 for services to patients c. Company provides services to a client and bills them $50,000 on account d. Company purchased equipment for $15,000 e. Company received cash for services of $10,000; services will be provided at a later date f. Company paid shareholders cash dividends of $1,000 g. Company paid the following expenses during September: $1,000 wages $1,500 rent $250 miscellaneous Prepare ABCs Income Statement from the data above. (Cash Method) Prepare a Statement of Retained Earnings from the data above. (Cash Method) Prepare a Balance Sheet for ABC Co. from the above data. (Cash Method) Stmt of R/B

Answer 1

	Income statement
	Service revenue	60000
	Expense
	Wages expense	1000
	Rent expense	1500
	Misc. expense	250
	Total expense	2750
	Net income	57250
	Retained earnings
	Beginning balance
Add	Net income	57250
		57250
	Dividend	1000
	Ending balance	56250
	Balance sheet
	Assets
	Cash	66250
	Accounts receivable	50000
	Equipment	15000
	Total assets	131250
	Liabilities and stockholders equity
	Accounts payable	15000
	Unearned revenue	10000
	Total liabilities	25000
	Common stock	50000
	Retained eranings	56250
	Total stockholders equity	106250
	Total liabilities and stockholders equity	131250