Question

The following trial balance has been adjusted as of December 31, 20XX
	Debits	Credits
Cash	$                         25,000	$                                        -
Accounts Receivable	6,000	-
Supplies Inventory	4,500	-
Prepaid Rent	18,000	-
Equipment	90,000	-
Accumulated Depreciation	-	2,500
Accounts Payable	-	6,000
Utilities Payable	-	4,000
Unearned Revenue	-	1,500
Interest Payable	-	150
Notes Payable	-	24,000
Common Stock	-	100,000
Service Revenue	-	90,000
Wages Expense	35,000	-
Supplies Expense	20,000	-
Rent Expense	15,000	-
Miscellaneous Expense	2,000	-
Electricity Expense	2,400	-
Telephone Expense	1,500	-
Depreciation Expense	1,000	-
Interest Expense	250	-
Dividend	7,500	-
Total	$                      228,150	$                      228,150
Required:			Points
(1) Prepare an Income Statement			5
(2) Prepare a Statement of Retained Earnings			5
(3) Prepare a Balance Sheet			5

Answer 1

1.)	Income Statement
	For the year ended December 31,20XX		Amount in $
	Revenues
	Service Revenue		90,000
	Expenses:
	Wage Expense	35,000
	Rent Expense	15,000
	Miscellaneous Expense	2,000
	Electricity Expense	2,400
	Telephone Expense	1,500
	Depreciation Expense	1,000
	Supplies Expense	20,000
	Interest Expense	250
	Total Expenses		77,150
	Net Income /(loss)		12,850
2.)	Statement of Retained earnings
		Amount in $
	Opening Balance	-
	Add: Net Income /(loss)	12,850
		12,850
	Less: Dividends	7,500
	Ending Retained earnings	5,350
3.)	Balance Sheet
	As on December 31, 20XX		Amount in $
	Assets
	Cash		25,000
	Accounts Receivable		6,000
	Supplies Inventory		4,500
	Prepaid rent		18,000
	Equipment	90,000
	Less: Accumulated Depreciation	2,500	87,500
	Total Assets		141,000
	Liabilties & Stockholder's Equity
	Liabilties
	Accounts Payable	6,000
	Unearned revenue	1,500
	Interest payable	150
	Notes Payable	24,000
	Utilities Payable	4,000
	Total Liabilities		35,650
	Stockholder's Equity
	Common Stock	100,000
	Retained Earnings	5,350
	Total Stockholder's Equity		105,350
	Total Liabilties & Stockholder's Equity		141,000	-