Question

given the following account information prepare a balance sheet in report form for the company as of December 31, 2018. all accounts have normal balances

1 what is net income?

2 what is ending retained earnings?

3 create a classified balance sheet

V PrB-Given the following count information Given the following account information for Manhattan Corporation, prepare a balance sheet in report form for the company as of December 31, 2018. All accounts have normal balances 1. What is net income? (calculate the amount) 2. What is ending retained earnings? (Calculate the amount) 3. Create a Classified Balance Sheet below or on the next page. Accounts Receivable Accumulated Depr.- Bid Accumulated Depreciation Equip Advertising Expense Bonds Payable Buildings Cash Common Stock Depreciation Expense Dividends paid Equipment Income Taxes Payable Interest Expense Interest Payable Land Notes Payable (due in 6 months) Prepaid Advertising Retained Earnings, Jan 1 Salaries and Wages Expense Salaries and Wages Payable Service Revenue Supplies Utilities Expense 102.000 15,000 30,000 1,600 80.000 180,000 145,000 300,000 8.000 50,000 100,000 9,400 3,000 600 250.000 29,000 5,000 89,000 55,000 1,000 350,000 2,000

Answer 1

1.

Income Statement For the year ended December 31, 2018
Revenues
Service Revenue		$ 350,000
Expenses
Salaries and Wages Expense	$ 55,000
Utilities Expense	2,400
Advertising Expense	1,600
Depreciation Expense	8,000
Interest Expense	3,000
Total Expenses		70,000
Net Income		280,000

2.

Statement of Retained Earnings For the year ended December 31, 2018
Retained Earnings, Jan 1	$ 89,000
Net Income	280,000
Less: Dividends	(50,000)
Retained Earnings, Dec 31	$ 319,000

3.

Balance Sheet December 31, 2018
Assets
Current Assets		$	$
Cash		145,000
Accounts Receivable		102,000
Supplies		2,000
Prepaid Advertising		5,000
Total Current Assets			254,000
Property Plant and Equipment
Land		250,000
Buildings, at cost	180,000
Accumulated Depreciation: Building	(15,000)	165,000
Equipment, at cost	100,000
Accumulated Depreciation: Equipment	(30,000)	70,000
Property Plant and Equipment, net			485,000
Total Assets			$ 739,000
Liabilities
Current Liabilities
Salaries and Wages Payable		1,000
Income Taxes Payable		9,400
Interest Payable		600
Notes Payable		29,000
Total Current Liabilities			40,000
Long Term Liabilities
Bonds Payable			80,000
Total Liabilities			120,000
Stockholders Equity
Common Stock		300,000
Retained Earnings		319,000
Total Stockholders Equity			619,000
Total Liabilities and Stockholders Equity			$ 739,000