Exercise 316 Prepare financial statements from an adjusted t

Exercise 3-16 Prepare financial statements from an adjusted trial balance (LO3-5) [The following information applies to the questions displayed below. The December 31, 2018, adjusted trial balance for Fightin\' Blue Hens Corporation is presented below. 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 Credit Debit $10,000 130,000 4,000 20,000 200,000 $115,000 0,000 9,000 3,000 20,000 100,000 40,000 300,000 200,000 10,000 20,000 3,000 Totals $597000 $597,000

Solution

Statement of Stockholder\'s Equity Common Retained Total Stock Earnings Stockholders Equity Balance at January 1 100,000 40,000 140,000 Add:Net Income 67,000 67000 Balance at Decmeber 31 100,000 107,000 207,000 (net income = service revenue - expenses) (300,000-200,000-10,000-20,000-3,000) 67000 Balance Sheet                           Assets                                               Liabilities                                 Cash 10,000 Accounts payable 10,000 Accounts receivable 130,000 Salaries payable 9,000 prepaid rent 4,000 interest payable 3,000 supplies 20,000 total current assets 164,000 total current liabilities 22,000 Notes payable 20,000 Stockholder\'s Equity Equipment 200,000 Common stock 100,000 Accumulated depreciation -115,000 Retained earnings 107,000 total stockholders equity 207,000 Total assets 249,000 total liabilities & stockholders equity 249,000