Question

Taser Consulting is a consulting firm owned and operated by Annamarie Phipps. The following end-of-period spreadsheet was prepared for the year ended October 31, 2018: Taser Consulting End-of-Period Spreadsheet For the Year Ended October 31, 2018 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 45,000 45,000 Accounts Receivable 119,200 119,200 Supplies 11,900 7,500 4,400 Office Equipment 400,000 400,000 Accumulated Depreciation 56,000 6,000 62,000 Accounts Payable 20,500 20,500 Salaries Payable 9,000 9,000 Common Stock 75,000 75,000 Retained Earnings 180,700 180,700 Dividends 25,000 25,000 Fees Earned 800,000 800,000 Salary Expense 520,000 9,000 529,000 Supplies Expense 7,500 7,500 Depreciation Expense 6,000 6,000 Miscellaneous Expense 11,100 11,100 1,132,200 1,132,200 22,500 22,500 1,147,200 1,147,200 Based on the preceding spreadsheet, prepare an income statement, retained earnings statement, and balance sheet for Taser Consulting. Be sure to read the instructions for each financial statement carefully. Prepare an income statement for the year ended October 31, 2018 for Taser Consulting. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement. Taser Consulting Income Statement 1 2 3 4 5 6 7 8

Answer 1

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Taser Consulting
Income Statement
For the Year Ended October 31, 2018
Fees Earned		$800,000
Expenses:
Salary expense	$529,000
Supplies expense	$7,500
Depreciation expense	$6,000
Miscellaneous expense	$11,100
Total expenses		$553,600
Net Income		$246,400

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Taser Consulting
Retained Earnings Statement
For the Year Ended October 31, 2018
Retained earnings, October 31, 2018		$180,700
Net income	$246,400
Dividends	($25,000)
Change in retained earnings		$221,400
Retained earnings, October 31, 2018		$402,100

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Taser Consulting
Balance Sheet
October 31, 2018
Assets
Current assets:
Cash	$45,000
Accounts receivables	$119,200
Supplies	$4,400
Total current assets		$168,600
Property, plant, and equipment:
Office equipment	$400,000
Accumulated depreciation	($62,000)
Total property, plant, and equipment		$338,000
Total assets		$506,600
Liabilities
Current liabilities:
Accounts Payable	$20,500
Salaries Payable	$9,000
Total liabilities		$29,500
Stockholders' Equity
Common Stock	$75,000
Retained earnings	$402,100
Total stockholders' equity		$477,100
Total liabilities and stockholders' equity		$506,600