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Financial Statement Creation – Use the information below to create B/S, I/S and Statement of Retained...

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Accounting

Financial Statement Creation – Use the information below tocreate B/S, I/S and Statement of Retained Earnings after adjustingfor the four additional activities below

  1. 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

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

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