Question

I'm missing and expense

Following are the accounts and balances (in random order) from the adjusted trial balance of Star Notes payable Prepaid insurance Interest expense Accounts payable Wages payable Cash Wages expense Insurance expense Common stock Retained earnings Services revenue $ 11,000 Accumulated depreciation-Buildings 2,500 Accounts receivable 500 Utilities expense 1,500 Interest payable 400 Unearned revenue 10,000 Supplies expense 7,500 Buildings 1,800 Dividends 10,000 Depreciation expense-Buildings 14,800 Supplies 20,000 $ 15,000 4,000 1,300 100 800 200 40,000 3,000 2,000 800 Prepare the (1) income statement and (2) statement of retained earnings for the year ended Decen December 31. The Retained Earnings account balance was $14,800 on December 31 of the prior y

Answer 1

$ 20,000 STARK COMPANY Income Statement For Year Ended December 31 Revenue Services revenue Expenses Depreciation expense-building $ Wages expense Interest expense $ Utilities expense $ Supplies expense $ Insurance expense $ Total expenses Net income $ 2,000 7,500 500 1,300 200 1,800 $ $ $ 13,300 6,700

• Net income = Revenue - Total expenses

STARK COMPANY Statement of Changes in Shareholders' Equity For Year Ended December 31 Common Shares Retained Earnings $ 10,000 $ 14,800 $ $ $ $ $ $ 6,700$ $ $ (3,000) $ $ 10,000 $ 18,500 $ Total Equity 24,800 Beginning Balance Issuance of common stock Add: Net Income Less: Dividends Ending Balance $ $ $ $ 6,700 (3,000) 28,500

STARK COMPANY BALANCE SHEET December 31 ASSETS Current assets Cash Accounts receivable Supplies Prepaid insurance Total current assets Non-current assets Buildings $ Less: Accumulated depreciation - buildings $ Total assets $ $ $ $ $ 10,000 4,000 800 2,500 17,300 40,000 (15,000) $ $ 25,000 42,300

$ $ $ $ $ 1,500 400 100 800 2,800 $ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Current liabilities Accounts payable Wages payable Interest payable Unearned revenue Total current liabilities Other liabilities Notes payable Total liabilities Shareholders' equity Common shares $ 10,000 Retained earnings $ 18,500 Total Shareholders' equity Total liabilities and shareholders' equity $ $ 11,000 13,800 $ $ 28,500 42,300