Question

Problem 5: A corporation has been in business for one month. From the financial information at January 31 shown below, complete an income statement, statement of changes in stockholders' equity, and balance sheet Accounts receivable Accounts payable Cash Common stock Equipment Insurance expense Miscellaneous expense Office supplies expense Service revenue Wages expense Dividends $ $ $ $ $ $ $ $ $ $ $ 4,000 5,000 1,000 4,000 8,000 1,500 2,500 1,000 20,000 9,000 2,000

Answer 1

20,000 A CORPORATION Income Statement For the Month ended January 31, 20XX Revenues Service Revenue 20,000 Total revenues Expenses Insurance expense 1,500 Wages Expense 9,000 Office supplies Expene 1,000 Miscellanious expense 2,500 Total Expenses Net Income 14.000 6,000 A CORPORATION Retained Earnings Statement For the Month ended January 31, 20XX Retained earnings (beginning of year) Add: Net income Less: Dividends Retained earnings January 31,20XX 6,000 2,000 4,000

A CORPORATION Balance Sheet For the Month ended January 31, 20XX Assets Current Assets: Cash 1.000 Accounts receivable 4,000 Total current assets 5,000 Property, plant and equipment: Equipment 8,000 Less: Accumulated depreciation 8,000 Total assets 13,000 Liabilities and Stockholder's Equity Current liabilities Accounts Payable 5,000 Total current Liabilities 5,000 Stockholders' equity Common stock 4.000 Retained earnings January 31, 20XX 4,000 Total Stockholder's Equity 8.000 Toatl Liabilities and Stockholder's Equity 13,000 Note: In the given problem the depreciation Expense was ignored due to the absence of required information.