Following is a list of financial statement items and amounts for Tim Burr’s Tree Service as...

Following is a list of financial statement items and amounts for Tim Burr’s Tree Service as of 12/31/X3, the end of its first year in operation. Accounts Receivable $ 40,100 Accounts Payable 30,100 Cash 10,010 Common Stock 20,100 Notes Payable 10,020 Equipment 50,050 Service Revenue 100,500 Fuel Expense 10,010 Rent Expense 10,000 Advertising Expense 5,010 Salaries and Wages Expense 20,100 Retained Earnings ? Dividends 15,440 Required: 1. Prepare the Income Statement for the year ended December 31, 20X3. 2. Prepare the statement of retained earnings for the year ended December 31, 20X3. 3. Prepare the balance sheet for the year ended December 31, 20X3.

Expert Solution

1. Prepare the Income Statement for the year ended December 31, 20X3.

Service revenue	100500
Expense
Fuel expense	-10010
Rent expense	-10000
Advertising expense	-5010
Salary and wages expense	-20100
Total expense	-45120
Net income	55380

2. Prepare the statement of retained earnings for the year ended December 31, 20X3.

Beginning retained earning	0
Add: Net income	55380
Less: Dividend	-15440
Ending retained earnings	39940

3. Prepare the balance sheet for the year ended December 31, 20X3.

Assets
Current assets
Cash	10010
Account receivable	40100
Total current assets		50110
Non current assets
Equipment	50050
Total non current assets		50050
Total assets		100160
Liabilities and stockholder's equity
Current liabilities
Account payable	30100	30100
Long term liabilties
Notes payable	10020	10020
Total liabilties		40120
Shareholder's equity
Common Stock	20100
Retained earnings	39940
Total shareholder's equity		60040
Total liabilities and shareholder's equity		100160

ekkarill92 answered 1 year ago

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