Question

Mondrian Company show the following balances. Prepare an Income statement, statement of retained earnings and a balance sheet.
Cash	14,900
Accounts receivable	6,200
Supplies	8,400
Equipment	15,900
Accounts payable	2,400
Common stock	22,000
Retained earnings, Dec. 31, Year 1	15,900
Retained earnings, Dec. 31, Year 2	7,200
Owner Draw	14,200
Consulting revenue	45,200
Rental revenue	17,400
Salaries expense	18,500
Rent expense	16,700
Selling and administrative expenses	8,100
Mondrian Income Statement Year 2
Total Revenue
Expenses
Total Expenses
Net Income (Revenue- Expenses)
ARMANI COMPANY
Statement of Retained Earnings
Dec 31, Year 2
Retained earnings, Dec. 31, Year 1
Add: Net income
Less: Owner Draw
Retained earnings, Dec. 31, Year 2

Mondrian Company
Balance Sheet
Dec 31 Year 2
Assets		Liabilities
		Total liabilities
		Equity
		Total equity
Total assets		Total liabilities and equity

Answer 1

Mondrlan
Income Statement
Year 2
Consulting revenue	45,200
Rental revenue	17,400
Total Revenue	62,600
Expenses
Salaries expense	18,500
Rent expense	16,700
Selling and administrative expenses	8,100
Total Expenses	43,300
Net Income (Revenue- Expenses)	19,300
Mondrlan
Statement of Retained Earnings
Year 2
Retained earnings, Dec. 31, Year 1	$15,900
Add: Net Income	$19,300
	$35,200
Less: Owner Draw	$14,200
Retained earnings, Dec. 31, Year 2	$21,000
Mondrlan
Balance Sheet
Dec 31, Year 2
Assets		Liabilities
Current Assets		Current Liabilities
Cash	14,900	Accounts Payable	2,400
Accounts Receivable	6,200
Supplies	8,400
Total current assets	29,500	Total Liabilities	2,400
Property, plant, and equipment		Equity
Equipment	15,900	Common Stock	22,000
		Retained Earnings	21,000
		Total Equity	43,000
Total Assets	45,400	Total Liabilities and Equity	45,400