Financial Statement Creation – Use the information below tocreate B/S, I/S and Statement of Retained Earnings after adjustingfor the four additional activities below
- Consider the following information from a company's unadjustedtrial balance at December 31, 2018. All accounts have normalbalances.
Accounts Receivable | $ | 7,500 |
Accounts Payable | | 650 |
Cash | | 2,700 |
Service Revenue | | 16,500 |
Common Stock, $2 par, 10,000 authorized | | 2,000 |
Common Stock, add’l pd in capital | | 7,000 |
Equipment, at cost | | 12,900 |
Accumulated depreciation | | 2,300 |
Depreciation Expense | | 700 |
Land | | 5,800 |
Notes Payable, Due 2021 | | 8,000 |
Investment Securities | | 1,200 |
Prepaid Rent | | 1,400 |
Rent Expense | | 2,400 |
Retained Earnings, January 1, 2018 | | 5,850 |
Salaries and Wages Expense | | 8,000 |
Unearned revenue | | 300 |
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At year-end, the company accountant realizes that the followingtransactions have to be recorded:
- November 5, purchase 100 shares for the Treasury at a cost of$8 per share
- Perform half of the work customers paid for in advance
- Dec 1, Issue 1,200 shares of common stock at issue price of $9per share
- Dec 31, declare and pay a dividend to common stock outstandingof $.50 per share
