In: Accounting
Steve’s Laundry
Trial Balance
December 31, 2016
Cash 6,100
Laundry Supplies 9,560
Prepaid Insurance 8,490
Laundry Equipment 105,100
Accumulated Depreciation Laundry Equipment 40,200
Accounts Payable 6,100
Mortgage Payable (Due 2030) 10,000
Capital Stock 6,000
Retained Earnings 1-1-2016 31,800
Dividends 2,000
Laundry Revenue 170,900
Wages Expense 61,400
Rent Expense 36,000
Utilities Expense 10,000
Insurance Expense 13,650
Miscellaneous Expense 12,700
Prepare and income statement, retained earnings statement and balance statement for Steve’s Laundry for the year ending December 31, 2016. Please complete the problem using an excel worksheet provided. Please remember to use proper format including financial heading for the statements.
Solution:
Income Statement - Steve Laundry | |
For the year ended December 31, 2016 | |
Particulars | Amount |
Lanudry revenue | $170,900.00 |
Operating Expenses: | |
Wage Expense | $61,400.00 |
Rent Expense | $36,000.00 |
Utilities Expense | $10,000.00 |
Insurance Expense | $13,650.00 |
Miscellenous Expense | $12,700.00 |
Net Income | $37,150.00 |
Statement of Retained Earnings - Steve Laundry | |
For the year ended December 31, 2016 | |
Particulars | Amount |
Retained earnings - Jan1, 2016 | $31,800.00 |
Add: Net Income for 2016 | $37,150.00 |
Less: Dividend paid | $2,000.00 |
Retained Earnings - Dec 31, 2016 | $66,950.00 |
Balance Sheet - Steve Laundry | ||||
As on December 31, 2016 | ||||
Liabilities | Amount | Assets | Amount | |
Stockholder's Equity: | Property, Plant & Equipment: | |||
Capital stock | $6,000.00 | Laundry Equipment | $105,100.00 | |
Retained Earnings | $66,950.00 | Accumulated depreciation | -$40,200.00 | $64,900.00 |
Longterm liabilities: | Current Assets: | |||
Mortgage Payable | $10,000.00 | Cash | $6,100.00 | |
Current Liabilities: | Laundry Supplies | $9,560.00 | ||
Accounts Payable | $6,100.00 | Prepaid Insurance | $8,490.00 | |
Total Liabilities and Equity | $89,050.00 | Total Assets | $89,050.00 |