Question

Exercise 4-9

Martinez Company ended its fiscal year on July 31, 2019. The company’s adjusted trial balance as of the end of its fiscal year is shown below.

Martinez Company
Adjusted Trial Balance
July 31, 2019
No.
Account Titles
Debit
Credit
101 Cash
$8,500
112 Accounts Receivable
8,800
157 Equipment
15,500
158 Accumulated Depreciation—Equip.
$7,800
201 Accounts Payable
4,700
208 Unearned Rent Revenue
2,500
311 Common Stock
17,700
320 Retained Earnings 25,400
332 Dividends
16,000
400 Service Revenue
63,000
429
Rent Revenue
6,500
711 Depreciation Expense
7,000
726 Salaries and Wages Expense
56,300
732 Utilities Expense
15,500
    

$127,600
$127,600

Prepare an income statement for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Martinez Company
Income Statement

For the Year Ended July 31, 2019
For the Month Ended July 31, 2019
July 31, 2019

Dividends
Expenses
Net Income / (Loss)
Retained Earnings, August 1, 2016
Retained Earnings, July 31, 2017
Revenues
Total Expenses
Total Revenues
$
    
Dividends    
Expenses    
Net Income / (Loss)    
Retained Earnings, August 1, 2016    
Retained Earnings, July 31, 2017    
Revenues    
Total Expenses    
Total Revenues    
$

Dividends
Expenses
Net Income / (Loss)
Retained Earnings, August 1, 2016
Retained Earnings, July 31, 2017
Revenues
Total Expenses
Total Revenues
$
    
Dividends    
Expenses    
Net Income / (Loss)    
Retained Earnings, August 1, 2016    
Retained Earnings, July 31, 2017    
Revenues    
Total Expenses    
Total Revenues    

Dividends
Expenses
Net Income / (Loss)
Retained Earnings, August 1, 2016
Retained Earnings, July 31, 2017
Revenues
Total Expenses
Total Revenues
$

SHOW LIST OF ACCOUNTS
LINK TO TEXT

Prepare an retained earnings statement for the year.

Martinez Company
Retained Earnings Statement

July 31, 2019
For the Month Ended July 31, 2019
For the Year Ended July 31, 2019

Dividends
Expenses
Net Income / (Loss)
Retained Earnings, July 1, 2019
Retained Earnings, July 31, 2019
Revenues
Total Expenses
Total Revenues
$

Less
Add
:
    
Dividends    
Expenses    
Net Income / (Loss)    
Retained Earnings, July 1, 2019    
Retained Earnings, July 31, 2019    
Revenues    
Total Expenses    
Total Revenues    
$

Add
Less
:
    
Dividends    
Expenses    
Net Income / (Loss)    
Retained Earnings, July 1, 2019    
Retained Earnings, July 31, 2019    
Revenues    
Total Expenses    
Total Revenues    

Dividends
Expenses
Net Income / (Loss)
Retained Earnings, July 1, 2019
Retained Earnings, July 31, 2019
Revenues
Total Expenses
Total Revenues
$

SHOW LIST OF ACCOUNTS
LINK TO TEXT

Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity.)

Martinez Company
Balance Sheet

For the Month Ended July 31, 2019
For the Year Ended July 31, 2019
July 31, 2019
Assets

Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-Term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
$
    
Current Assets    
Current Liabilities    
Intangible Assets    
Long-term Investments    
Long-term Liabilities    
Property, Plant and Equipment    
Stockholders' Equity    
Total Assets    
Total Current Assets    
Total Current Liabilities    
Total Intangible Assets    
Total Liabilities    
Total Liabilities and Stockholders' Equity    
Total Long-term Investments    
Total Long-Term Liabilities    
Total Property, Plant and Equipment    
Total Stockholders' Equity    
$

Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-Term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
    
Add    
Less    
:
    
Current Assets    
Current Liabilities    
Intangible Assets    
Long-term Investments    
Long-term Liabilities    
Property, Plant and Equipment    
Stockholders' Equity    
Total Assets    
Total Current Assets    
Total Current Liabilities    
Total Intangible Assets    
Total Liabilities    
Total Liabilities and Stockholders' Equity    
Total Long-term Investments    
Total Long-Term Liabilities    
Total Property, Plant and Equipment    
Total Stockholders' Equity    
$
Liabilities and Stockholders' Equity

Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-Term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
$
    
Current Assets    
Current Liabilities    
Intangible Assets    
Long-term Investments    
Long-term Liabilities    
Property, Plant and Equipment    
Stockholders' Equity    
Total Assets    
Total Current Assets    
Total Current Liabilities    
Total Intangible Assets    
Total Liabilities    
Total Liabilities and Stockholders' Equity    
Total Long-term Investments    
Total Long-Term Liabilities    
Total Property, Plant and Equipment    
Total Stockholders' Equity    
$

Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-Term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
    
Current Assets    
Current Liabilities    
Intangible Assets    
Long-term Investments    
Long-term Liabilities    
Property, Plant and Equipment    
Stockholders' Equity    
Total Assets    
Total Current Assets    
Total Current Liabilities    
Total Intangible Assets    
Total Liabilities    
Total Liabilities and Stockholders' Equity    
Total Long-term Investments    
Total Long-Term Liabilities    
Total Property, Plant and Equipment    
Total Stockholders' Equity    
    
Current Assets    
Current Liabilities    
Intangible Assets    
Long-term Investments    
Long-term Liabilities    
Property, Plant and Equipment    
Stockholders' Equity    
Total Assets    
Total Current Assets    
Total Current Liabilities    
Total Intangible Assets    
Total Liabilities    
Total Liabilities and Stockholders' Equity    
Total Long-term Investments    
Total Long-Term Liabilities    
Total Property, Plant and Equipment    
Total Stockholders' Equity    
$

Answer 1

Trial Balance
	Debit	Credit
Cash	$8,500
Accounts receivable	8,800
Equipment	15,500
Accumulated depreciation—Equipment		7,800
Accounts payable		4,700
Unearned Rent Revenue		2,500
Common stock		17,700
Retained earnings		25,400
Dividends	16,000
Servic revenue		63,000
Rent revenue		6,500
Depreciation expense	7,000
Salaries and wages expense	56,300
Utilities expense	15,500
Totals	$127,600	$127,600
Income Statement
For Year Ended July 31 2019
Revenues
Servic revenue	$63,000
Rent revenue	$6,500
Total revenues		$69,500
Expenses
Depreciation expense	7,000
Salaries and wages expense	56,300
Utilities expense	15,500
Total expenses		78,800
Net Income/(loss)		($9,300)
Statement of Retained Earnings
For Year Ended July 31 2019
Retained earnings, August 1 2016	$25,400
Add: Net income	-9,300
	16100
Less: Dividends	16,000
Retained earnings, July 31 2017	100
Balance Sheet
For Year Ended July 31 2019
Assets
Current assets
Cash		$8,500
Accounts receivable		$8,800
Total current assets`		$17,300
Propety Plant & equipment
Equipment	$15,500
Accumulated depreciation—Equipment	-7,800	7700
Total assets		$25,000
Liabilities
Accounts payable		$4,700
Unearned Rent Revenue		$2,500
Total liabilities		7200
Stockholder equity
Common stock	17,700
Retained earnings	100
Total Stockholder equity		17,800
Total liabilities and equity		25000
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