Question

Homework: SLO Project Score: 0 of 10 pts 3 of 6 (1 complete) HW S P3-46A (similar to) 0 Data Table The adjusted trial balance of Vineyard Realty, Inc., at December 31, 2018, follows: EE (Click the icon to view the adjusted trial balance.) Read the requirements. Requirement 1. Prepare Vineyard Realty's income statement and statement of retained earnings for the year ending December 31, 2018, and year-end balance sheet. List expenses in decreasing order on the income statement. Start by preparing the income statement. (List expenses in decreasing order on the income statement.) 0 Vineyard Realty, Inc. Income Statement For the Year Ended December 31, 2018 - Requirements X Revenues: 900 1. Prepare Vineyard Realty's income statement and statement of retained earnings for the year ending December 31, 2018, and year-end balance sheet. List expenses in decreasing order on the income statement. 2. a. Which financial statement reports Vineyard Realty's results of operations? Were operations successful during 2018? Cite specifics from the financial statements to support your evaluation. b. Which statement reports the company's financial position? Total revenues 3,300 Expenses: Vineyard Realty, Inc. Adjusted Trial Balance December 31, 2018 Account Debit Credit Cash 10,200 Accounts receivable 8,000 Prepaid rent 1,500 Supplies Equipment 46,000 Accumulated depreciation, equipment 7,100 Accounts payable Unearned service revenue 1,800 Interest payable 500 Salaries payable 1,800 Notes payable 4,000 Common stock 39,925 Retained earnings Dividends 4,000 Service revenue 76,000 Interest revenue 775 Salaries expense 50,000 Rent expense 13,000 Depreciation expense, equipment 2,300 Utilities expense 2,100 Interest expense 1,900 1,100 Supplies expense Total $ 141,000 $ 141,000 Print Done 5,800 Total expenses Net income Print Done Choose from any list or enter any number in the input fields and then click Check Answer. 5 parts remaining Clear All

Answer 1

Requirement 1: Prepare income statement, statement of retained earnings and balance sheet as follows

VR Inc
Income Statement
For the Year Ended December 31, 2018
Particulars	Amount	Amount
Revenues:
Service Revenue	$76,000
Interest Revenue	$775
Total Revenues		$76,775
Expenses
Salaries Expense	$50,000
Rent Expense	$13,000
Depreciation Expense - Equipment	$2,300
Utilities Expense	$2,100
Interest Expense	$1,900
Supplies Expense	$1,100
Total Expenses		$70,400
Net Income		$6,375
VR Inc
Statement of Retained Earnings
For the Year Ended December 31, 2018
Particulars		Amount
Retained Earnings, January 1, 2018		$5,800
Add: Net income for the year		$6,375
		$12,175
Deduct: Dividends		$4,000
Retained Earnings, December 31, 2018		$8,175
VR Inc
Balance Sheet
December 31, 2018
Assets
Cash		$10,200
Accounts Receivable		$8,000
Prepaid Rent		$1,500
Supplies		$900
Equipment	$46,000
Deduct: Accumulated Depreciation - Equipment	($7,100)	$38,900
Total Assets		$59,500
Liabilities
Accounts Payable		$3,300
Unearned Service Revenue		$1,800
Interest Payable		$500
Salaries Payable		$1,800
Notes Payable		$4,000
Total Liabilities		$11,400
Stockholders' Equity:
Common Stock	$39,925
Retained Earnings	$8,175
Total stockholders' equity		$48,100
Total Liabilities and Stockholders' Equity		$59,500

Requirement 2a; Income statement statement presents the results of operations and the operations of company were successful because it is able to generate a net income of $6,375.

Requirement 2b: Balance sheet reports the financial position of the company.