Question

Gator Investments provides financial services related to investment selections, retirement planning, and general insurance needs. At the end of the year on December 31, 2021, the company reports the following amounts: Advertising expense Buildings Salaries expense Accounts payable Cash $ 31,700 Service revenue 132,000 Interest expense 63,300 Utilities expense 4,600 Equipment 3,700 Notes payable $118,600 1,700 13,700 18,000 21,000 In addition, the company had common stock of $100,000 at the beginning of the year and issued an additional $10,000 during the year. The company also had retained earnings of $13,300 at the beginning of the year and paid dividends of $3,400. Required: 1. Prepare the income statement for Gator Investments. 2. Prepare the statement of stockholders' equity for Gator Investments. 3. Prepare the balance sheet for Gator Investments. Complete this question by entering your answers in the tabs below.

Answer 1

Requirement 1:

GATOR INVESTMENTS
Income Statement
For the year ended Dec. 31,2012
Revenues:
Service revenue		$118,600
Expenses:
Advertising expense	$31,700
Salaries expense	$63,300
Interest expense	$1,700
Utilities expense	$13,700
Total expenses		$110,400
Net income		$8,200

Requirement 2:

GATOR INVESTMENTS
Statement of Stockholders' Equity
For the year ended Dec.31,2012
	Common stock	Retained Earnings	Total stockholder's Equity
Beginning balance	$100,000	$13,300	$113,300
Issuance of stock	$10,000		$10,000
Net income		$8,200	$8,200
Dividends		($3,400)	($3,400)
Ending balance	$110,000	$18,100	$128,100

Requirement 3:

GATOR INVESTMENTS
Balance Sheet
Dec.31,2021
Assets		Liabilities
Cash	$3,700	Accounts payable	$4,600
Buildings	$132,000	Notes payable	$21,000
Equipment	$18,000
		Total liabilities	$25,600
		Stockholder's equity
		Common stock	$110,000
		Retained earnings	$18,100
		Total stockholder's equity	$128,100
Total assets	$153,700	Total liabilities and stockholder's equity	$153,700