Question

Based on the following financial information, construct the balance sheet and income statement below for Tonka Trucking LLC for the year ending December 31, 2019. Be sure to format them as accurately as possible. Accounts Receivable $40,000 Depreciation Expense $50,000 Accumulated Depreciation $200,000 Cost of Goods Sold $50,000 Income Tax Expense $50,000 Cash $50,000 Sales Revenue $400,000 Equipment (Net of Accumulation) $200,000 Selling, General, and Administrative Expenses $100,000 Common Stock (1,000 shares) $100,000 Accounts Payable $50,000 Retained Earnings $200,000 Interest Expense $50,000 Inventory $10,000 Long-term Debt $50,000

Answer 1

INCOME STATEMENT
Sales revenue		$     400,000
Cost of goods sold		$       50,000
Gross profit		$     350,000
Less: Operating expenses:
Depreciation expense	$           50,000
SG&A Expenses	$         100,000
Total operating expenses		$     150,000
Net operating income		$     200,000
Interest expense		$       50,000
Income before taxes		$     150,000
Income tax expense		$       50,000
Net income		$     100,000
STATEMENT OF RETAINED EARNINGS
Beginning balance		$     200,000
Add: Net income for the year		$     100,000
Ending balance		$     300,000
BALANCE SHEET
Assets
Current assets:
Cash	$           50,000
Accounts receivable	$           40,000
Inventory	$           10,000
Total current assets		$     100,000
Non-current assets:
Eauipment	$         600,000
Accumulated depreciation	$         200,000	$     400,000
Total assets		$     500,000
Total liabilities and Owners' Equity
Current liabilities:
Accounts payable	$           50,000
Total current liabilities		$       50,000
Non-current liabilities-Long term debt		$       50,000
Total liabilities		$     100,000
Common stock, $100 par	$         100,000
Retained earnings	$         300,000	$     400,000
Total liabilities and owners' equity		$     500,000