Question

Required Information Reporting Amounts on the Four Basic Financial Statements and Evaluating Financial Statements [LO 1-2, LO 1-3] [The following information applies to the questions displayed below.] The following information for the year ended December 31, 2016, was reported by Nice Bite, Inc. $ 45,000 22.88 1e3, see 102,800 180, 500 Accounts Payable Accounts Receivable Cash (balance on January 1, 2016) Cash (balance on December 31, 2016) Common Stock Dividends Equipment Income Tax Expense Interest Expense Inventory Notes Payable Prepaid Rent Office Expense Retained Earnings (beginning) Salaries and Wages Expense Service Revenue Utilities Expense Salaries and Wages Payable 136,700 10,100 29,500 17.299 23,600 7.ee 14,300 6,300 35,700 137.899 25,190 8,000 Other cash flow information: Cash from issuing common stock Cash paid to reacquire common stock Cash paid for income taxes Cash paid to purchase long-term assets Cash paid to suppliers and employees Cash received from customers $ 21,000 23,500 11.ee 41,000 83,209 137. eae PA1-3 Part 3 3. Prepare a balance sheet for 2016.

Answer 1

Solution:

Balance Sheet for 2016:

Nice Bite, Inc.
Balance sheet
For year ended December 31, 2016
Assets
Current assets:
Cash	$               102,800
Accounts Receivable	$                  22,800
Inventory	$                  17,200
Prepaid Rent	$                    7,000
Property,plant, and equipment:
Equipment	$               136,700
Total Assets	$               286,500
Liabilities and stockholder's Equity
Current liabilities:
Salaries and Wages Payable	$                    8,000
Accounts Payable	$                  45,000
Unearned Revenue
Long Term Liabilities:
Notes payable	$                  23,600
Owner`s Equity:
Common Stock	$               180,500
Retained Earnings ( Note:1)	$                  29,400
Total liabilities and stockholder's equity	$               286,500

Notes:

1) Retained Earnings Statement for 2016

Nice Bite, Inc.
Retained Earnings Statement
For year ended December 31, 2016
Beginning Balance	$                 6,300
Add:Net Income ( Note:2)	$              23,100
Less:
Dividends (Cash Dividend)	$                        -
Dividends (Stock Dividend)	$                        -
Retained Earnings Closing Balance	$              29,400

2) Income statement for 2016

Nice Bite, Inc.
Income statement
For year ended December 31, 2016
Revenue
Service Revenue	$    137,800
Total Revenue (A)	$    137,800
Operating Expenses
Utilities Expense	$      25,100
Salaries and Wages Expense	$      35,700
Office Expense	$      14,300
Interest Expense	$      29,500
Income Tax Expense	$      10,100
Total Operating Expense (B)	$    114,700
Non Operating(or) Other	$                 -
Net Income (A-B)		$      23,100