Question

Problem 3-5A Prepare financial statements from an adjusted trial balance when net income is positive (LO3-5) Boilermaker Unlimited specializes in building new homes and remodeling existing homes. Remodeling projects include adding game rooms, changing kitchen cabinets and countertops, and updating bathrooms. Below is the year-end adjusted trial balance of Boilermaker Unlimited. BOILERMAKER UNLIMITED Adjusted Trial Balance December 31, 2018 DebitsCredits S 15,000 24,000 31,000 Accounts Receivable Supplies Prepaid Insurance Equipment 500,000 Accounts Payable Salaries Payable Utilities Payable Notes Payable (due in 5 years) Common Stock Retained Eamings $ 160,000 30,000 27,000 4,000 100,000 150,000 79,000 25,000 400,000 250,000 Salaries Expense Supplies Expense Depreciation Expense Insurance Expense Utilities Expense Interest Expense Service Fee Expense 150,000 275,000 40,000 24,000 41,000 6,000 63,000 Totals $1,200,000 $1,200,000

Answer 1

BOILERMAKER UNLIMITED Income Statement For the Year Ended December 31, 2018 BOILERMAKER UNLIMITED Statement of changes in Retained Earnings For the Year Ended December 31, 2018 Retained Earnings, Beginning balance Add: Net Income $79,000 $51,000 $130,000 $25,000 $105,000 Service revenues: $400,000 $250,000 [Ref: Income Statement] New construction Remodeling Total revenues $650,000 Less: Dividends Expenses: Retained Earnings, Ending balance Salary Expense Supply Expense Depreciation Expense Insurance Expense Utilities Expense Interest Expense Service Fee Expense Total Expenses $150,000 $275,000 $40,000 $24,000 $41,000 $6,000 $63,000 $599,000 Net Income (Loss) $51,000 [Total revenues - Total expenses]