Question

Hi there,

I am having difficulty with the attached homework question. If you guys could please help work through the steps. My balance sheet isn't balancing :/

These financial statement items for Fairview Corporation at year-end, July 31, 2017.

Salaries and wages payable $2,080

Salaries and wages expense 57,500

Supplies expense 15,600

Equipment 18,500

Accounts payable 4,100

Service revenue 66,100

Rent revenue 8,500

Notes payable (due in 2020) 1,800

Common stock 16,000

Cash 29,200

Accounts receivable 9,780

Accumulated depreciation-equipment 6,000

Dividends 4,000

Depreciation expense 4,000

Retained earnings (beginning of the year) 34,000

Prepare an income statement and retained earnings statement for the year. Fairview Corporation did not issue any new stock during the year.

Prepare a classified balance sheet at July 31.

Thanks.

Answer 1

Fair view corporation Income statement

Revenues :-

Service revenue - $66100

Rent revenue - $ 8500

Total revenue = $ 74600

Less : Expenses :-

Salaries expense = $57500

Supplies expense = $15600

Depreciation Expenses = $4000

Net loss = $2500

Retained earning will be reduced by amount of loss & dividend paid

= $34000 - $2500 -$4000 = $27500

Balance sheet

Assets

Current Assets

Cash = $29200

Acc Receivables = $9780

Total current = . $38980

Plant & property = $18500

Less acc. Dep. ($6000). = $12500

TOTAL ASSETS = $51480

liabilities Accounts payable ............................................$ 4,100

Salaries and wages payable ...........................2,080

Total current liabilities .................................$ 6,180

Long-term liabilities

Notes payable ..................................................1,800

Total liabilities ..............................................7,980

Stockholders’ equity

Common stock .................................................16,000

Retained earnings ............................................27,500

Total stockholders’ equity...........................43,500

Total liabilities and equity. $51480

Please like is satisfied.