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 $ 32,800 Service revenue 143,000 Interest expense 64,400 Utilities expense 5,700 Equipment 4,800 Notes payable $124,100 2,800 14,800 23,500 26,500 In addition, the company had common stock of $110,000 at the beginning of the year and issued an additional $10,000 during the year. The company also had retained earnings of $14,300 at the beginning of the year and paid dividends of $4,500 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. Required 1 Required 2 Required 3 Prepare the income statement for Gator Investments. GATOR INVESTMENTS Income Statement For the year ended Dec. 31, 2021 Expenses:

Answer 1

1]	INCOME STATEMENT
	Revenues:
	Service revenue		$      124,100
	Expenses:
	Advertising expense	$          32,800
	Salaries expense	$          64,400
	Interest expense	$            2,800
	Utilities expense	$          14,800
	Total expenses		$      114,800
	Net income		$           9,300
2]	STATEMENT OF RETAINED EARNINGS
		Common Stock	Retained Earnings	Total Stockholders' Equity
	Beginning balance	$       110,000	$        14,300	$        124,300
	Additional common stock issued	$ 10,000	$                  -	$          10,000
	Net income for the year	$                   -	$ 9,300	$ 9,300
	Dividends	$                   -	$        (4,500)	$          (4,500)
	Ending balance	$       120,000	$        19,100	$        139,100
3]	BALANCE SHEET
	Assets
	Current assets:
	Cash	$            4,800
	Total current assets		$ 4,800
	Non-current assets:
	Equipment	$ 23,500
	Buildings	$       143,000	$      166,500
	Total assets		$      171,300
	Total liabilities and Stockholders' Equity
	Current liabilities:
	Acccounts payable	$            5,700
	Total current liabilities		$ 5,700
	Non-current liabilities-Notes payable		$        26,500
	Total liabilities		$        32,200
	Stockholders' Equity
	Common stock	$       120,000
	Retained earnings	$ 19,100
	Total stockholders' equity		$      139,100
	Total liabilities and stockholders' equity		$      171,300