Question

Required information [The following information applies to the questions displayed below] The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below. Credit Debit $ 11,300 143.000 5,300 26.500 330,000 Accounts Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Accounts Payable Salaries Payable Interest Payable Notes Payable (due in two years) Common Stock Retained Earnings Service Revenue Salaries Expense Rent Expense Depreciation Expense Interest Expense $ 128,000 11,300 10.300 4,300 33.000 230,000 53,000 430,000 330,000 16,500 33,000 4,300 Totals $899,900 $899.900

Answer 1

Solution:

Requirement 1:

FIGHTIN` BLUE HENS CORPORATION
Income statement
For the Year Ended December 31, 2018
Revenue
Service / Sale Revenue		$ 430,000
Total Revenue (A)		$ 430,000
Expenses:
Salaries Expense	$               330,000
Rent Expense	$                  16,500
Depreciation Expense	$                  33,000
Interest Expense	$                    4,300
Total Expense (B)		$ 383,800
Net Income (A-B)		$     46,200

Requirement 2:

FIGHTIN` BLUE HENS CORPORATION
Statement of Stockholders` Equity
For the Year Ended December 31, 2018
	Common Stock	Retained Earnings	Total Stockholders` Equity
Balance at January 1	$             230,000	$                    53,000	$                                   283,000
Net income	$                         -	$                    46,200	$                                     46,200
Dividends	$                         -	$                              -	$                                               -
Balance at December 31	$             230,000	$                    99,200	$                                   329,200

Requirement 3:

FIGHTIN` BLUE HENS CORPORATION
Balance sheet
For the Year Ended December 31, 2018
Assets		Liabilities
Current assets:		Current liabilities:
Cash	$        11,300	Account Payable	$            11,300
Accounts Receivable	$     143,000	Salaries Payable	$            10,300
Prepaid Rent	$          5,300	Interest Payable	$               4,300
Supplies	$        26,500
Total current assets	$     186,100	Total current liabilities	$            25,900
		Long term liabilities
Property,plant, and equipment:		Notes payable(due in two years)	$            33,000
Equipment	$     330,000	Total long term Liabilities	$            33,000
Less: Accumulated Depreciation	$   (128,000)	Stockholders` Equity
Net Equipment	$     202,000	Common Stock	$          230,000
		Retained Earnings	$            99,200
Total Long-term assets	$     202,000	Total stockholders` equity	$          329,200
Total Assets	$     388,100	Total liabilities and stockholders` equity	$          388,100