Question

2. Use the following information to prepare, in good form, an income statement, a statement of changes in equity, and a statement of financial position for Geelin Industries Ltd. for the month ended August 31, 2018:

...... Accounts payable..........................................................       $ 9,375

...... Accounts receivable......................................................           5,500

...... Bank loan payable.........................................................         13,750

...... Cash..............................................................................         58,750

...... Common shares............................................................         94,375

...... Dividends declared........................................................          6,250

...... Income tax expense......................................................         17,375

...... Insurance expense........................................................           2,125

...... Building..........................................................................       125,000

...... Retained earnings (beginning)......................................         40,625

...... Revenues......................................................................         78,750

...... Salaries expense...........................................................        20,625

...... Supplies.........................................................................           1,250

Answer 1

	Geelin Industries
	Income Statement
	For the Month Ended August 31st,2018
	Revenues		$                                          78,750.00
	Expense
	Salaries Expense	$         20,625.00
	Insurance Expense	$           2,125.00
	Total Expenses		$                                          22,750.00
	Income before tax		$                                          56,000.00
	Income tax expense		$                                          17,375.00
	Net Income after tax		$                                          38,625.00
	Geelin Industries
	Statement of Owner's Earnings
	For the Month Ended August 31st,2018
	Common Stock	$         94,375.00
	Beginning Retained Earnings	$         40,625.00
	Add: Net Income	$         38,625.00
	Less: Dividend declared	$         (6,250.00)
	Ending Balance of Retained Earnings	$     1,67,375.00
	Geelin Industries
	Balance Sheet
	For the Month Ended August 31st,2018
	Assets
	Current Assets
	Cash	$         58,750.00
	Accounts Receivable	$           5,500.00
	Supplies	$           1,250.00
	Total Current Assets		$                                          65,500.00
	Fixed Assets
	Building		$                                      1,25,000.00
	Total Assets		$                                      1,90,500.00
	Liabilities & Stockholder's Equity
	Liabilities
	Accounts Payable	$           9,375.00
	Bank loan payable	$         13,750.00
	Total Liabilities		$                                          23,125.00
	Stockholder's Equity
	Owner's Equity		$                                      1,67,375.00
	Total liabilities & stockholder's Equity		$                                      1,90,500.00