Question

Riley, Incorporated reports the following amounts at the end of the year:

Cash	$	72,900		Service revenue	$	92,600
Buildings		50,000		Salaries expense		53,800
Accounts payable		9,400		Equipment		63,000
Interest expense		2,300		Supplies		5,900
Advertising expense		9,500		Notes payable		48,000

In addition, the company had common stock of $74,000 at the beginning of the year and issued an additional $7,800 during the year. The company also had retained earnings of $27,300 at the beginning of the year and paid dividends of $1,700 during the year. Prepare the income statement, statement of stockholders' equity, and balance sheet.

Answer 1

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Riley, Incorporated
Answer 1
Income Statement
Particulars	Amount $	Amount $
Service revenue	92,600.00
Total Revenue		92,600.00
Less: Expenses
Interest expense	2,300.00
Advertising expense	9,500.00
Salaries expense	53,800.00
Total expense		65,600.00
Profit		27,000.00
Answer 2
Statement of stockholder's Equity	Common Stock	Retained Earnings
Opening Balance	74,000.00	27,300.00
Add: Common stock issued during the year	7,800.00
Add: Profit		27,000.00
Less: Dividends		1,700.00
Closing balance	81,800.00	52,600.00

Answer 3
Balance Sheet
Assets	Amount $	Amount $
Current Assets
Cash	72,900.00
Supplies	5,900.00
Current Assets		78,800.00
Non Current Assets
Plant, Property & Equipment
Buildings	50,000.00
Equipment	63,000.00	113,000.00
Plant, Property & Equipment		113,000.00
Total Assets		191,800.00
Liabilities & stockholder's Equity
Liabilities
Current Liabilities
Accounts Payable	9,400.00
Current Liabilities		9,400.00
Non Current Liabilities
Note payable	48,000.00
Non Current Liabilities		48,000.00
Total Liabilities		57,400.00
Stockholder's Equity
Common Stock	81,800.00
Retained Earnings	52,600.00
Stockholder's Equity		134,400.00
Total Liabilities & Stockholder's Equity		191,800.00