Question

On 31 December 2018, the accounting records in Ahmed’s Company showed the following information:

                                                                                          (in Dirhams)

Cash	49,500
Accounts Receivable	125,000
Supplies	1,500
Prepaid Insurance	12,000
Equipment	70,000
Building	420,000
Land	111,500
Accounts Payable	80,000
Notes Payable	170,000
Common Stock	410,000
Retained Earnings	65,000
Dividends	20,000
Service Revenue	174,000
Interest Revenue	1,000
Salaries Expense	52,000
Advertising Expense	17,000
Insurance Expense	5,000
Utilities Expense	13,750
Interest Expense	2,750

Prepare the Income Statement AND Balance Sheet for year ended December 31, 2018

Ahmed’s Company
Income Statement For Year Ended 31 December 2018
Revenues:	.
Total Revenues
Expenses:
Total Expenses
Net Income/Profit

Answer 1

Ahmed's Company
Income Statement for the year ended 31 December 2018
Revenues:
Service Revenue	174000
Interest Revenue	1000
Total Revenues	175000
Expenses:
Salaries Expense	52000
Advertising Expense	17000
Insurance Expense	5000
Utilitied Expense	13750
Interest Expense	2750
Total Expenses	90500
Net Income/Profit	84500
Retained Earnings Statement
Beginning balance	65000
Add: Net income	84500
	149500
Less: Divindeds	20000
	129500
Ahmed's Company
Balance Sheet for the year ended December 31, 2018
Assets
	(In Dirhams)
Current Assets:
Cash	49,500
Accounts receivable	1,25,000
Supplies inventory	1,500
Prepaid Insurnace	12,000
Total Current assets		1,88,000
Property, Plant and Equipment:
Equipment	70,000
Buildings	4,20,000
Land	1,11,500	6,01,500
Total assets		7,89,500
Liabilities and stockholders' Equity
liabilities:
Accounts Payable	80,000
Notes Payable	1,70,000
		2,50,000
Stockholders' equity:
Common stock	4,10,000
Retained earnings	1,29,500
Total Stockholders' equity		5,39,500
Total liabilities and stockholders' equity		7,89,500