Question

Use the information presented in this worksheet to prepare an income statement, retained earnings statement, and balance sheet. Show cell references if possible.

ESP Corporation
Worksheet for year ended December 31, 2018
	Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
Cash	5,900				$           5,900				$           5,900
Accounts Receivable	12,450		$         2,800		$         15,250				$         15,250
Office Supplies			$            200		$              200				$              200
Prepaid insurance	2,400			$         1,800	$              600				$              600
Equipment	169,000				$      169,000				$      169,500
Accumulated Depreciation - Equipment		21,900		$      16,900		$         38,800				$         38,800
Accounts Payable		9,950				$           9,950				$           9,950
Interest Payable				$            450		$              450				$              450
Unearned Rent Revenue		6,400				$           4,800				$           4,800
Notes Payable		30,000	$         1,600			$         30,000				$         30,000
Common Stock		40,500				$         40,500				$         40,500
Retained Earnings		24,000				$         24,000				$         24,000
Dividends	4,000				$           4,000				$           4,000
Service Revenue		194,500		$         2,800		$      197,300		$      197,300
Rent Revenue		1,600		$         1,600		$           3,200		$           3,200
Depreciation Expense			$      16,900		$         16,900		$         16,900
Salaries and Wages Expense	84,700				$         84,700		$         84,700
Rent Expense	30,000				$         30,000		$         30,000
Utilities Expense	13,900				$         13,900		$         13,900
Insurance Expense			$         1,800		$           1,800		$           1,800
Supplies Expense	6,500			$            200	$           6,300		$           6,300
Interest Expense			$            450		$              450		$              450
	328,850	328,850	$      23,750	$      23,750	$      349,000	$      349,000	$      154,050	$      200,500	$      194,950	$      148,500
							$         46,450			$         46,450
							$      200,500	$      200,500	$      194,950	$      194,950

Answer 1

• All details and figures are filled from Adjusted Trial Balance data.

Income Statement
For the year ended Dec 31, 2018
Revenues:
Service Revenue	$ 197,300.00
Rent Revenue	$       3,200.00
Total Revenues		$      200,500.00
Expenses:
Depreciation Expense	$    16,900.00
Salaries and Wages Expense	$    84,700.00
Rent Expense	$    30,000.00
Utilities Expense	$    13,900.00
Insurance Expense	$       1,800.00
Supplies Expense	$       6,300.00
Interest Expense	$          450.00
Total Expenses		$      154,050.00
Net Income		$        46,450.00

Statement of Retained Earnings
For the year ended Dec 31, 2018
Retained Earnings - Beginning Balance		$        24,000.00
Add: Net Income	$    46,450.00
Less: Dividends	$       4,000.00
Net Increase (Decrease)		$        42,450.00
Retained Earnings - Ending Balance		$        66,450.00

Balance Sheet
as at Dec 31, 2018
ASSETS
Current Assets:
Cash	$       5,900.00
Accounts Receivable	$    15,250.00
Office Supplies	$          200.00
Prepaid insurance	$          600.00
Total Current Assets		$    21,950.00
Property, Plant & Equipment:
Equipment	$ 169,500.00
Accumulated Depreciation - Equipment	$ (38,800.00)	$ 130,700.00
Total Assets		$ 152,650.00
LIABILITIES
Accounts Payable	$       9,950.00
Interest Payable	$          450.00
Unearned Rent Revenue	$       4,800.00
Notes Payable	$    30,000.00
Total Liabilities		$    45,200.00
STOCKHOLDER's EQUITY
Common Stock	$    40,500.00
Retained Earnings	$   66,450.00
Total Stockholder's Equity		$ 106,950.00
Total Liabilities & Stockholder's Equity		$ 152,150.00