Question

Riley incorporated reports the following amounts at the end of the year:

Cash 3200, Building 60,000, account payable 8500, interest expense 4000, Adverting expense 11,300, Service revenue 92,500, Salaries expense 72,800, Equipment 72,000, Supplies 6,400, Notes payable 40,000.

IN addition the company had common stock of $65,000 at the beginning of the year and issued an additional $5,000 during the year the company also had retained earnings of $20,700 at the beginning of the year and paid dividends of $2,000 during the year. Prepare the income statement of stockholder's equity and balance sheet:

Net income _______________________

Ending balance of common stock __________________

Ending balance of retained earning__________________

Ending total stockholder's equity__________________

Total assets__________

Total current assets____________

Total liabilities___________________

Total liabilities and shareholders equity ________________

Answer 1

Income Statement
Service Revenue		92500
Less: Expenses
Interest Expense	4000
Advertising expense	11300
Salaries expenses	72800	88100
Net Income		4400

Statement of stock holders equity
	Common Stock	Retained Earnings	Total Stock holders equity
Balance on january 1	65,000	20,700	85,700
Issuance of additional shares	5,000		5,000
Net income		4,400	4,400
Cash dividends		-2,000	-2,000
Closing balance at 31st	70,000	23,100	93,100

Balance Sheet
As at Dec 31st
Assets
Equipment	72,000
Building	60,000
Cash	3,200
Supplies	6,400
Total Assets	1,41,600
Liabilities
Accounts Payable	8,500
Notes Payable	40,000
Total Liabilities	48,500
Stock Holders Equity
Common Stock	70,000
Retained Earnings	23,100
Total Stock Holders Equity	93,100
Total Liabilities and stockholders equity	1,41,600