The following items are taken from the financial statements of KON Inc. (HR consulting service company)...

The following items are taken from the financial statements of KON Inc. (HR consulting service company) for its first fiscal year ended December 31, 2019:

Service Revenue	$61,000	Advertising Expense	$1,600
Cash	$15,000	Common Shares (share Capital) Jan 1, 2019	$0
Depreciation Expense	$1,000	Dividends	$5,000
Note Payable	$70,000	Prepaid Insurance	$6,000
Rent Expense	$12,400	Retained Earnings Jan 1, 2019	$0
Salaries Expense	$30,000	Salaries Payable	$3,000
Insurance Expense	$2,400	Accumulated Depreciation, Video Equip	$10,000
Video Equipment	$210,000	Income Tax Expense	$3,000

Instructions: From the above accounts use ONLY the accounts that you need and…

(A) Prepare an Income Statement, in good form for 2019

(B) Prepare a Statement of Changes in Equity for 2019

Additional Information: During 2019, the company Issued New Common Shares for $10,000

Expert Solution

a. Income Statement

HR Consulting service company
Income Statement
For the Months Ended 2019
Revenue:
Services Revenue		$ 61,000
Total Revenue		$ 61,000
Expenses:
Salaries Expense	$ 30,000
Insurance Expense	$ 2,400
Advertising Expense	$ 1,600
Rent Expense	$ 12,400
Depreciation Expense	$ 1,000	$ 47,400
Earnings before Tax		$ 13,600
Income Tax		-$ 3,000
Net Income		$ 10,600

b. Statement of changes in equity
HR Consulting service company
Statement of change in Shareholders Equity
For the Months Ended 2019
Beginning Capital	$ -
Additional Capital	$ 10,000
Total Common Stock	$ 10,000
Retained Earnings, Oct,1,2019	$ -
Add: Net Income	$ 10,600
Less:Dividend	-$ 5,000
Retained Earnings, Dec,31,2019	$ 5,600
Total Shareholders Equity	$ 15,600

ekkarill92 answered 2 years ago

1. The following items are taken from the financial statements of the Postal Service for the...

1. The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2013: Accounts payable $ 19,000 Accounts receivable 11,000 Accumulated depreciation – equipment 28,000 Advertising expense 21,000 Cash 11,000 Common stock 40,000 Dividends 14,000 Depreciation expense 12,000 Equipment 190,000 Insurance expense 3,000 Note payable, due 6/30/14 70,000 Patents 20,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/13) 65,000 Salaries and wages expense 32,000 Service revenue 125,000 Supplies 4,000...

The following items are taken from the financial statements of Novak Company for the year ending...

The following items are taken from the financial statements of Novak Company for the year ending December 31, 2022: Accounts payable $18,000 Accounts receivable 7,600 Accumulated depreciation—equipment 4,600 Bonds payable 18,000 Cash 22,000 Common stock 26,100 Cost of goods sold 28,100 Depreciation expense 5,800 Dividends 5,000 Equipment 42,000 Interest expense 2,600 Patents 5,020 Retained earnings, January 1, 2022 7,200 Salaries and wages expense 6,000 Sales revenue 53,200 Supplies 2,980 can you explain ( Income Statement, Balance Sheet, Current Ratio, Debt...

The following items are taken from the financial statements of Ivanhoe Company at December 31, 2022....

The following items are taken from the financial statements of Ivanhoe Company at December 31, 2022. Land $197,900 Accounts receivable 22,000 Supplies 10,200 Cash 12,050 Equipment 82,100 Buildings 261,200 Land improvements 45,900 Notes receivable (due in 2023) 6,200 Accumulated depreciation—land improvements 12,700 Common stock 80,000 Retained earnings (December 31, 2022) 495,000 Accumulated depreciation—buildings 33,600 Accounts payable 9,800 Mortgage payable 91,900 Accumulated depreciation—equipment 18,950 Interest payable 3,400 Income taxes payable 15,500 Patents 46,700 Investments in stock (long-term) 71,300 Debt investments (short-term)...

The following items are taken from the financial statements of Sheridan Company at December 31, 2022....

The following items are taken from the financial statements of Sheridan Company at December 31, 2022. Land $196,500 Accounts receivable 22,600 Supplies 10,700 Cash 12,050 Equipment 84,000 Buildings 263,000 Land improvements 46,250 Notes receivable (due in 2023) 5,400 Accumulated depreciation—land improvements 13,100 Common stock 76,000 Retained earnings (December 31, 2022) 491,000 Accumulated depreciation—buildings 33,300 Accounts payable 9,900 Mortgage payable 103,950 Accumulated depreciation—equipment 18,950 Interest payable 4,000 Income taxes payable 14,700 Patents 46,700 Investments in stock (long-term) 72,400 Debt investments (short-term)...

The following items are taken from the financial statements of Cullumber Company at December 31, 2022....

The following items are taken from the financial statements of Cullumber Company at December 31, 2022. Land $196,500 Accounts receivable 21,300 Supplies 10,100 Cash 12,000 Equipment 83,100 Buildings 261,400 Land improvements 46,250 Notes receivable (due in 2023) 5,100 Accumulated depreciation—land improvements 13,100 Common stock 73,500 Retained earnings (December 31, 2022) 502,000 Accumulated depreciation—buildings 34,200 Accounts payable 9,300 Mortgage payable 90,150 Accumulated depreciation—equipment 18,700 Interest payable 3,800 Income taxes payable 15,200 Patents 47,100 Investments in stock (long-term) 72,200 Debt investments (short-term)...

The following items were taken from the financial statements of Buttercup Company. (All dollars are in...

The following items were taken from the financial statements of Buttercup Company. (All dollars are in thousands.) Mortgage payable$ 1,443Accumulated depreciation3,655 Prepaid expenses880Accounts payable1,444 Property, plant, and equipment11,000Notes payable after 20171,200 Long-term investments1,100Shareholder Capital13,480 Short-term investments3,690Accounts receivable1,696 Notes payable in 20171,000Inventories1,756 Cash2,100 Instructions Prepare a classified balance sheet in good form as of December 31, 2016.

The following items are taken from the financial statements of Super Company for 2019: Cash 26,000...

The following items are taken from the financial statements of Super Company for 2019: Cash 26,000 Common Stock 25,000 Cost of Goods Sold 17,000 Depreciation Expense 4,800 Dividends 5,300 Equipment 44,000 Interest Expense 2,500 Rent Expense 2,000 Patents 7,500 Note Payable (Due 2020) 3,000 Retained Earnings, January 1 16,000 Salaries Expense 5,200 Sales Revenue 35,500 Accounts Payable 18,500 Rent Payable 2,000 Accounts Receivable 4,000 Accumulated Depreciation 4,800 Bonds Payable 18,000 Supplies 4,500 Instructions: Prepare the following statements a) Multistep income...

The following items are taken from the financial statements of SGB Company for 2013: Cash $300,000...

The following items are taken from the financial statements of SGB Company for 2013: Cash $300,000 Accounts Receivable 150,000 Inventory 70,000 Accounts Payable 13,000 Supplies 20,000 Salaries Payable 10,000 Unearned Revenue 25,000 Intangible assets 98,000 Property, plant, and equipment, net 176,000 Common Stock 50,000 Additional Paid-in Capital 150,000 Retained Earnings, 12/31/2012 78,300 Long-term debt 275,000 Service revenue 483,700 Cost of Goods Sold 170,000 Rent expense 50,000 Supplies expense 15,000 Insurance expense 36,000 Instructions: (1) Create a classified balance sheet in...

The following items are taken from the financial statements of Oriole Company at December 31, 2022....

The following items are taken from the financial statements of Oriole Company at December 31, 2022. Land $196,000 Accounts receivable 22,000 Supplies 11,000 Cash 11,800 Equipment 82,200 Buildings 261,000 Land improvements 46,400 Notes receivable (due in 2023) 5,700 Accumulated depreciation—land improvements 12,700 Common stock 71,500 Retained earnings (December 31, 2022) 505,000 Accumulated depreciation—buildings 34,400 Accounts payable 9,000 Mortgage payable 91,700 Accumulated depreciation—equipment 18,700 Interest payable 3,300 Income taxes payable 14,500 Patents 47,400 Investments in stock (long-term) 72,800 Debt investments (short-term)...

The following items were taken from the financial statements of Garcia Company. Mortgage payable $ 2,340...

The following items were taken from the financial statements of Garcia Company. Mortgage payable $ 2,340 Accumulated depreciation 3,560 Prepaid expenses 980 Accounts payable 1,555 Property, plant, and equipment 11,500 Notes payable due after 2020 1,200 Long-term investments 1,300 Owner’s capital 14,026 Short-term investments 3,690 Accounts receivable 1,696 Notes payable due in 2020 1,000 Inventories 1,765 Cash 2,750 Instructions: Prepare a classified balance sheet in good form (with the proper three-line heading) as of December 31, 2019.

Question