Question

Prepare a retained earnings statement for the year ended December 31, 2022. (List items that increase retained earnings first.)
Prepare a classified balance sheet as of December 31, 2022. (List Current Assets in order of liquidity.)

These items are taken from the financial statements of Cullumber Company for 2022. Retained earnings (beginning of year) Utilities expense Equipment Accounts payable Cash Salaries and wages payable Common stock Dividends Supplies Debt investment (long-term) Trademarks Service revenue Prepaid insurance Maintenance and repairs expense Depreciation expense Accounts receivable Insurance expense Salaries and wages expense Accumulated depreciation-equipment $32,480 2,170 64,300 19,970 13,930 6,630 22,900 12,000 4,000 5,600 1,900 69,600 7,130 1,630 3,140 15,880 2,660 38,670 21,430 Prepare an income statement for the year ended December 31, 2022. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answer 1

Cullumber Company Income statement For the year Ended December 31, 2022 Service Revenue 69600 Utilities expense Salaries and wages expense Maintenance and repairs expense Insurance expense Depreciation expenses Total expenses and losses Net Income 2170 38670 1630 2660 3140 48270 21330 Cullumber Company Retained Earning Statement For the year Ended December 31, 2022 Beginning Retained Earning Add: Net Income Sub total Less: Dividends Ending Retained earnings 32480 21330 53810 -12000 41810

Cullumber Company Balancesheet For the year Ended December 31, 2022 Cash 13930 Accounts receivable 15880 Supplies 4000 Prepaid Insurance 7130 Total current assets 40940 Properties and Equipment Debt Investment (Long term) 5600 Equipment 64300 Less: Accumulated depreciation -2143042870 Intangible assets: Trade marks 19001 Total assets 91310

26600 Liabilities and Stockholders' Equity Liabilities: Accounts payable 19970 salaries and wages payable able 6630 Total Liabilities Stockholders' Equity Common stock 22900 Retained earnings 41810 Total stockholders' Equity Total Liabilities and Stockholders' Equity 64710 91310