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These financial statement items are from a companys year end July

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These financial statement items are from a company\'s
year end July 31, 2014 financial statements. Prepare the
following for the company:
a) An income statement and a retained earnings statement
for the year.
b) A classified Balance Sheet at July 31. Solve for cash.
Solution
PART A
Income Statement
Service Revenue
$ 66,100
Rent Revenue
$ 8,500
Less: Salaries and wages expense
$ (57,500)
Less: Supplies Expenses
$ (15,600)
Less: Depreciation Expenses
$ (4,000)
Net Loss
$ (2,500)

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Statement of Retained Earnings
Beginning balance of Retained Earnings
$ 34,000
Less: Net loss for Current Year
$ (2,500)
Less: Dividends Paid
$ (4,000)
Ending balance of Retained Earnings
$ 27,500
PART B
Balance Sheet
Assets
Liabilities and Equity
Current Assets:
Current Liabilities:
Cash (Balancing Figure)
$ 29,200
Accounts Payable
$ 4,100
Accounts Receivables
$ 9,780
Salaries and Wages Payable
$ 2,080
Total Current Assets
$ 38,980

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These financial statement items are from a company \'s year end July 31, 2014 financial statements. Prepare the following for the company: a) An income statement and a retained earnings statement for the year. b) A classified Balance Sheet at July 31. Solve for cash. Solution PART A Income Statement Service Revenue $ 66,100 Rent Revenue $ 8,500 Less: Salaries and wages expense $ (57,500) Less: Supplies Expenses $ (15,600) Less: Depreciation Expenses $ (4,000) Net Loss $ (2,500) Statement of Retained Earnings Beginning balance of Retained Earnings $ 34,000 Less: Net loss for Current Year $ (2,500) Less: Dividends Paid $ (4,000) Ending balance of Retained Earnings $ 27,500 PART B Balance Sheet Assets Liabilities and Equity Current Assets: Current Liabilities: Cash (Balancing Figure) $ 29,200 Accounts Payable $ 4,100 Accounts Receivables $ 9,780 Salaries and Wages Payable $ 2,080 Total Current Assets $ 38,980 Total Current Liabilities $ 6,180 Non-Current Assets: Non-Current Liabilities: Equipment $18,500 Notes Payable $ 1,800 Less: Accumulated Depreciation $ 12,500 Total Non-Current Liabilities $ 1,800 Total Non-Current Assets $ 12,500 Equ ...
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