Question

These items are taken from the financial statements of Kingbird, Inc. for 2017.

Retained earnings (beginning of year)		$ 33,380
Utilities expense		2,150
Equipment		68,380
Accounts payable		22,250
Cash		14,300
Salaries and wages payable		5,510
Common stock		12,000
Dividends		12,000
Service revenue		72,730
Prepaid insurance		6,010
Maintenance and repairs expense		1,650
Depreciation expense		3,140
Accounts receivable		15,650
Insurance expense		2,660
Salaries and wages expense		41,730
Accumulated depreciation—equipment		21,800

Prepare an income statement for the year ended December 31, 2017.

Kingbird, Inc. Income Statement choose the accounting period  For the Month Ended December 31, 2017For the Year Ended December 31, 2017December 31, 2017
select an opening name for section one  DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
enter an income statement item		$ enter a dollar amount
select an opening name for section two  DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
enter an income statement item	$ enter a dollar amount
enter an income statement item	enter a dollar amount
enter an income statement item	enter a dollar amount
enter an income statement item	enter a dollar amount
enter an income statement item	enter a dollar amount
select a closing name for section two  DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues		enter a total of the five previous amounts
select a closing name for this statement  DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues		$ enter a total net income or loss amount

eTextbook and Media

List of Accounts

Prepare a retained earnings statement for the year ended December 31, 2017. (List items that increase retained earnings first.)

Kingbird, Inc. Retained Earnings Statement choose the accounting period  For the Month Ended December 31, 2017December 31, 2017For the Year Ended December 31, 2017
select an opening name  DividendsExpensesNet Income / (Loss)Retained Earnings, January 1, 2017Retained Earnings, December 31, 2017RevenuesTotal ExpensesTotal Revenues	$ enter a dollar amount
select between addition and deduction  AddLess: select an item  DividendsExpensesNet Income / (Loss)Retained Earnings, January 1, 2017Retained Earnings, December 31, 2017RevenuesTotal ExpensesTotal Revenues	enter a dollar amount
	enter a subtotal of the two previous amounts
select between addition and deduction  AddLess: select an item  DividendsExpensesNet Income / (Loss)Retained Earnings, January 1, 2017Retained Earnings, December 31, 2017RevenuesTotal ExpensesTotal Revenues	enter a dollar amount
select a closing name  DividendsExpensesNet Income / (Loss)Retained Earnings, January 1, 2017Retained Earnings, December 31, 2017RevenuesTotal ExpensesTotal Revenues	$ enter a total amount

eTextbook and Media

List of Accounts

Prepare a classified balance sheet as of December 31, 2017. (List current assets in order of liquidity.)

Kingbird, Inc. Balance Sheet choose the accounting period  For the Month Ended December 31, 2017For the Year Ended December 31, 2017December 31, 2017
Assets
select an opening name for subsection one  Current AssetsCurrent LiabilitiesIntangible AssetsLong-Term InvestmentsLong-Term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item			$ enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
select a closing name for subsection one  Current AssetsCurrent LiabilitiesIntangible AssetsLong-Term InvestmentsLong-Term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity					$ enter a total amount for subsection one
select an opening name for subsection two  Current AssetsCurrent LiabilitiesIntangible AssetsLong-Term InvestmentsLong-Term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item			enter a dollar amount
select between addition and deduction  AddLess: enter a balance sheet item			enter a dollar amount		enter a subtotal of the two previous amounts
select a closing section name for this part of balance sheet  Current AssetsCurrent LiabilitiesIntangible AssetsLong-Term InvestmentsLong-Term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity					$ enter a total amount of this part of the balance sheet
Liabilities and Stockholders' Equity
select an opening name for subsection one  Current AssetsCurrent LiabilitiesIntangible AssetsLong-Term InvestmentsLong-Term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item			$ enter a dollar amount
enter a balance sheet item			enter a dollar amount
select a closing name for subsection one  Current AssetsCurrent LiabilitiesIntangible AssetsLong-Term InvestmentsLong-Term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity					$ enter a total amount for subsection one of the second part of the balance sheet
select an opening name for section two  Current AssetsCurrent LiabilitiesIntangible AssetsLong-Term InvestmentsLong-Term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
select a closing name for section two  Current AssetsCurrent LiabilitiesIntangible AssetsLong-Term InvestmentsLong-Term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity					enter a total of the two previous amounts
select a closing name for this part of the balance sheet  Current AssetsCurrent LiabilitiesIntangible AssetsLong-Term InvestmentsLong-Term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity					$ enter a total amount for this part of the balance sheet

Answer 1

Income statement gives details on the revenue and expenses of the company and provides the net earnings of the company for the year
Income statement for Kingbird for 2017 is shown below
Kingbird Inc
Income statement
For the year ended 31st December 2017
Revenue
Service revenue	$72,730
Total revenue		$72,730
Expenses
Utilities expense	$2,150
Maintenance and repairs expense	$1,650
Depreciation expense	$3,140
Insurance expense	$2,660
Salaries and wages expense	$41,730
Total expenses		$51,330
Net Income		$21,400
Retained earnings are the earnings which are accumulated over the years in the balance sheet of the company
Retained earnings statement for 2017 is shown below
Kingbird Inc
Retained earnings statement
For the year ended 31st December 2017
Retained earnings (Beginning of the year)		$33,380
Add: Net Income		$21,400
		$54,780
Less: Dividends		$12,000
Retained earnings December 31, 2017		$42,780
Balance sheet of the company shows the asset and liability position of the company as on particular date
The balance sheet as on 31st December 2017 is shown below
Kingbird Inc
Balance sheet
As on 31st December 2017
ASSETS
Current assets
Cash	$14,300
Prepaid insurance	$6,010
Accounts receivable	$15,650
Total current assets		$35,960
Property, plant and equipment
Equipment	$68,380
Less : Accumulated Depreciation	$21,800
Property, plant and equipment,net		$46,580
Total assets		$82,540
Liabilities and Owner's equity
Current liabilities
Accounts payable	$22,250
Salaries and wages payable	$5,510
Total current liabilities		$27,760
Stockholder's Equity
Common Stock	$12,000
Retained earnings	$42,780
Total Stockholder's equity		$54,780
Total Liabilities and stockholder's equity		$82,540