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

>All working forms part of the answer

Income Statement
Revenues:
Service Revenue		$92,500
Expenses:
Interest Expense	$4,000
Advertising Expense	$11,300
Salaries Expense	$72,800
Total Expenses		$88,100
Net Income		$4,400

Statement of Stockholder's Equity
	Common Stock	Retained Earnings	Total
Beginning balance	$65,000	$20,700	$85,700
Add: Common Stock issued	$5,000		$5,000
Add: Net Income		$4,400	$4,400
Less: Dividends		$2,000	$2,000
Ending balance	$70,000	$23,100	$93,100

Balance Sheet
ASSETS
Cash	$3,200
Supplies	$6,400
Total Current Assets		$9,600
Building		$60,000
Equipment		$72,000
Total Assets		$141,600
LIABILITIES
Accounts Payable	$8,500
Notes Payable	$40,000
Total Liabilities		$48,500
STOCKHOLDER's EQUITY
Common Stock	$70,000
Retained Earnings	$23,100
Total Stockholder's Equity		$93,100
Total Liabilities & Stockholder's Equity		$141,600

--Answers

Net income _______________________	$4,400
Ending balance of common stock __________________	$70,000
Ending balance of retained earning__________________	$23,100
Ending total stockholder's equity__________________	$93,100
Total assets__________	$141,600
Total current assets____________	$9,600
Total liabilities___________________	$48,500
Total liabilities and shareholders equity ________________	$141,600