Question

Russell Engineering provides consulting services related to land development. Below is the year-end adjusted trial balance of Russell Engineering.
    

RUSSELL ENGINEERING
Adjusted Trial Balance
December 31, 2021
Accounts	Debits				Credits
Cash	$	5,500
Accounts Receivable		4,200
Supplies		2,300
Prepaid Rent		6,100
Equipment		114,000
Accumulated Depreciation					$	25,000
Accounts Payable						3,600
Salaries Payable						3,500
Utilities Payable						1,500
Notes Payable (due in 4 years)						20,000
Common Stock						44,800
Retained Earnings						20,200
Service Revenue						118,500
Salaries Expense		45,000
Rent Expense		17,600
Depreciation Expense		6,000
Supplies Expense		9,400
Advertising Expense		15,000
Utilities Expense		10,800
Interest Expense		1,200
Totals	$	237,100			$	237,100

Required:  
1. Prepare an income statement for the year ended December 31, 2021.
  

2. Prepare the statement of stockholders’ equity, note that during the year the company issued additional common stock of $8,000. This amount is included in the amount for Common Stock in the adjusted trial balance.
    

3. Prepare the classified balance sheet for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)
    

Answer 1

RUSSELL ENGINEERING Income Statement For the Year Ended December 31, 2021 Revenue Service Revenue Expenses Salaries Expenses Advertising Expenses Rent Expenses Depreciation Expenses Supplies Expense Interest Expenses Utilities Expenses Total expenses Net Income 118,500 45,000 15,000 17,600 6,000 9,400 1,200 10,800 S 105,000 13,500 RUSSELL ENGINEERING Statement of stockholders' equity 2 For the Year Ended December 31, 2021 Common stocl 44,800 S 8,000 S 52,800 S -S 52,800 S Retained Beginning Balance Add Net Income 20,200 13,500 33,700 Less: Dividends Ending Balance 33,700

RUSSELL ENGINEERING Balance Sheet As of December 31,2021 Liabilities & Stockholders' Equity Assets Current assets : Current Liabilities S 3,600 S 3,500 S 1,500 S 8,600 Cash 13,500 Accounts Payable Salaries Payable Utilities payable Accounts Receivables 4,200 Prepaid Rent Supplies 6,100 2,300 Total current Liabilities 26,100 Long Term Borrowings Notes Payable Total current assets Property, Plant and Equipment Equipment Less: Accumulated Depreciation -Equipment Total Property, plant and Equipment S 20,000 114000 25000 S 28,600 Total liabilities Stockholders' equity 89,000 Common stock $ S52,800 S 33,700 Retained Earnings Total stockholdes' equity 115,100 Total Liabilities and Stock holders' equity $ 86,500 Total Assets si15,100