Question

Income Statement, Statement of Stockholders’ Equity, and Balance Sheet

Napolean Corporation started business on January 1, 2016. The following information was compiled by Napolean’s accountant on December 31, 2016:

Sales Revenue	$12,000		Equipment, net	$9,000
Expenses	7,200		Building, net	24,000
Dividends	1,800		Accounts Payable	2,400
Cash	900		Notes Payable	19,800
Accounts Receivable	1,500		Common Stock	12,000
Inventory	1,800		Retained Earnings	?

Required

You have been asked to assist the accountant for the Napolean Corporation in preparing year-end financial statements. Use the above information to prepare an income statement, statement of stockholders’ equity, and a balance sheet as of December 31, 2016.

NAPOLEAN CORPORATION Income Statement For Year Ended December 31, 2016
Sales Revenue	$Answer
AnswerAccounts PayableAccounts ReceivableBuilding, netCashCommon StockDividendsEquipment, netExpensesInventoryNotes PayableRetained EarningsSales Revenue	Answer
Net income	$Answer

NAPOLEAN CORPORATION Statement of Stockholders' Equity For Year Ended December 31, 2016
	Common Stock	Retained Earnings	Total
Balance, January 1, 2016	$Answer	$Answer	$Answer
Add: Net Income for 2016	Answer	Answer	Answer
Add: Issuance of Common Stock	Answer	Answer	Answer
Less: Dividends paid (enter as a negative)	Answer	Answer	Answer
Balance, December 31, 2016	$Answer	$Answer	$Answer

NAPOLEAN CORPORATION Balance Sheet December 31, 2016
	ASSETS
	AnswerAccounts PayableAccounts ReceivableBuilding, netCashCommon StockDividendsEquipment, netExpensesInventoryNotes PayableRetained EarningsSales Revenue		$Answer
	Accounts Receivable		Answer
	AnswerAccounts PayableAccounts ReceivableBuilding, netCashCommon StockDividendsEquipment, netExpensesInventoryNotes PayableRetained EarningsSales Revenue		Answer
	Building		Answer
	Equipment		Answer
	Total Assets		$Answer
	LIABILITIES AND STOCKHOLDERS' EQUITY
	LIABILITIES
	Accounts Payable	$Answer
	AnswerAccounts PayableAccounts ReceivableBuilding, netCashCommon StockDividendsEquipment, netExpensesInventoryNotes PayableRetained EarningsSales Revenue	Answer
	Total Liabilities		Answer
	STOCKHOLDERS' EQUITY
	AnswerAccounts PayableAccounts ReceivableBuilding, netCashCommon StockDividendsEquipment, netExpensesInventoryNotes PayableRetained EarningsSales Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableBuilding, netCashCommon StockDividendsEquipment, netExpensesInventoryNotes PayableRetained EarningsSales Revenue	Answer
	Total Stockholders' Equity		Answer
	Total Liabilities and Stockholders' Equity		$Answer

Answer 1