Question

Mondrian Company show the following balances. Prepare an income statement, statement of retained earnings and a balance sheet.

cash 14,900

accounts receivable 6,200

supplies 8,400

equipment 15,900

accounts payable 2,400

common stock 22,000

Retained earnings, December. 31, Year 1 15,900

Retained earnings, December 31, Year 2 7,200

Owner Draw 14,200

Consulting revenue 45,200

rental revenue. 17,400

salaries expense 18, 500

rent expense 16,700

selling and administrative expenses 8,100

Mondrain Income Statement Year 2

Total Revenue ?

Expenses ?

Total Expenses ?

Net Income (Revenue-Expense) ?

Armani Company Statement of Retained Earnings Dec 31, Year 2

Retained earnings Dec 31, Year 1

Add Net income ?

Less owner draw ?

retained earnings Dec 31, Year 2

Mondrain Company Balance Sheet Dec 31, Year 2

Assets ?

Liabilities ?

Total Liabilities ?

Equity ?

Total Equity?

Total Assets ?

Total liabilities and equity?

Answer 1

MONDRAIN
Income Statement
Year 2
Revenues :
Consulting Revenue	$ 45,200
Rental Revenue	$ 17,400
Total Revenues		$ 62,600
Less: Expenses:
Salaries expense	$ 18,500
Rent expense	$ 16,700
Selling and administrative expense	$ 8,100
Total expenses		($ 43,300)
Net Income		$ 19,300

MONDRAIN
Retained Earnings
December 31, Year 2
Retained earnings December 31,Year 1	$ 15,900
Add: Net income	$ 19,300
Less: owner draw	($14,200)
Retained earnings December 31,Year 2	$ 21,000

MONDRAIN
Balance Sheet
December 31, Year 2
Assets :
Current assets :
Cash	$ 14,900
Accounts receivable	$ 6,200
Supplies	$ 8,400
Total Current assets		$ 29,500
Property , plant and equipment :
Equipment		$ 15,900
Total assets		$ 45,400
Liabilities and shareholder's equity :
Current liabilities :
Accounts payable		$ 2,400
Shareholder's equity :
Common stock	$ 22,000
Retained earnings	$21,000
Total shareholder's equity		$ 43,000
Total liabilities and shareholder's equity		$ 45,400