Question

FINANCIAL STATEMENT Practice Problem NAME Given the list below of accounts and normal balances for the Munchkin income statement, statement of stockholders equity and classified balance sheet. Company on Dec 31, create an Cash Inventory Supplies Equipment Buildings Accounts payable Salaries Payable Common Stock 1,300 4,000 2,400 20,000 30,000 3.400 900 33,000 Retained Earnings (1/1) Service Revenue Cost of Goods Sold Delivery Expense Salaries Expense 16.200 62,700 52,400 1,600 4,500 Use the form below to create an Income Statement (Include headings) Bev b Create a Statement of Retained Earnings for Muchkin Beginning Retained Earnings Ending Retained Earnings

Answer 1

Munchkin
INCOME STATEMENT
Revenue
	Service revenue	62,700
Total Revenues		62,700
Expenses
	Cost of Goods sold	52,400
	Delivery Expense	1,600
	Salaries Expense	4,500
Total Expenses		58,500
Net Income		4,200
Statement of Retained Earnings
	Beginning Retained Earnings	16,200
	Add: Net income	4,200
	Ending Retained Earnings	20,400
Balance Sheet
Assets
Current Assets
	Cash	1,300
	Inventory	4,000
	Supplies	2,400
Total Current Assets		7,700
	Equipment	20,000
	Buildings	30,000
		57,700
Liabilities and stockholders' equity
Current liabilities
	Accounts Payable	3,400
	Salary Payable	900
Total Current Liabilities		4,300
Total Liabilities		4,300
Stockholders' equity
	Common Stock	33,000
	Retained earnings	20,400
Total stockholders' equity		53,400
Total liabilities and stockholders' equity		57,700