Question

The accounts listed below are for Mustafa, Inc.  Use the Adjusted Trial
Balance to prepare the income statement, statement of retained earnings, and
classified balance sheet at December 31, 2017.
	Debit	Credit
Cash	$6,000
Accounts Receivable	$3,120
Prepaid Insurance	$2,160
Equipment	$5,280
Accumulated Depreciation - Equipment		$3,120
Accounts Payable		$2,640
Unearned Revenue		$1,440
Notes Payable (long-term)		$3,600
Common Stock		$2,400
Retained Earnings, December 31, 2016		$2,160
Dividends	$600
Service Revenue		$9,840
Cost of Goods Sold	$5,160
Salaries Expense	$1,200
Utilities Expense	$960
Insurance Expense	$720
Totals	$25,200	$25,200
1. Prepare the income statement in the space below using highlighted cells
(please note that you may not need to use all cells) (7 points).
Mustafa, Inc.
Income Statement
For the Year Ended December 31, 2017
2. Prepare the statement of retained earnings in the space below using
highlighted cells (please note that you may not need to use all cells) (4 points).
Mustafa, Inc.
Statement of Retained Earnings
For the Year Ended December 31, 2017
3. Prepare the balance sheet in the space below using highlighted cells (please note that
you may not need to use all cells) (18 points).
Mustafa, Inc.
Balance Sheet
As of December 31, 2017
ASSETS
Current Assets:
Total Current Assets
Property, Plant, and Equipment:
Total Property, Plant, and Equipment
Total Assets
LIABILITIES
Current Liabilities:
Total Current Liabilities
Long-Term Liabilities:
Total Long-Term Liabilities
Total Liabilties
STOCKHOLDERS' EQUITY
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity

Answer 1

1 (a1)
Mustafa, Inc. Income Statement For the Year Ended December 31, 2017
Revenues:
Service Revenue		$ 9,840
Expenses :
- Cost of Goods Sold	$ 5,160
- Salaries Expense	$ 1,200
- Utilities Expense	$ 960
- Insurance Expense	$ 720
Total Expenses		($ $ 8,040)
Net Income		$ 1,800
Mustafa, Inc. Retained Earnings Statement For the Year Ended December 31, 2017
Retained Earnings- December 31, 2016	$ 2,160
Add: Net Income	$ 1,800
	$ 3,960
Less: Dividends Paid	($ 600)
Retained Earnings - December 31, 2017	$ 3,360
Mustafa, Inc. Balance Sheet At December 31, 2017
Assets
Current assets :
Cash	$ 6,000
Accounts Receivable	$ 3,120
Prepaid Insurance	$ 2,160
Total Current assets		$ 11,280
Property plant and Equipment
Equipment	$ 5,280
Less: Accumulated Depreciation - Equipment	($ 3,120)
Total Property plant and Equipment		$ 2,160
Total Assets		$ 13,440
Liabilities and Stockholders' Equity
Liabilities :
Accounts Payable	$ 2,640
Unearned Revenue	$ 1,440
Total Current Liabilities		$ 4,080
Long term Liabilities:
Note payable (Long Term )	$ 3,600
Total Long term Liabilities		$ 3,600
Total Liabilities		$ 7,680
Stockholders' Equity :
Common Stock	$ 2,400
Retained Earnings	$ 3,360
Total Stockholders' Equity		$ 5,760
Total Liabilities and Stockholders' Equity		$ 13,440