Chapter 1 tpx 76000 1550 2450 10700 25000 15000 fees expense

Chapter 1 tpx $76,000 1,550 2,450 10,700 25,000 15,000 fees expense the balance of common stock at the beginning of the year was $250,000, and the balance of retained eamings was $34,000. During the year, the company issued additional shares of common stock for $26,000 and paid dividends of $12,000 1. Prepare an income statement MacBook

Solution

1)

FIGHTING OKRA COOKING SERVICES

Income statement

Service Revenue

76000

Expenses:

Postage expense

1550

Legal fees expense

2450

Rent expense

10700

Salaries expense

25000

Supplies expense

15000

     Total expenses

54700

Net Income

21300

2)

FIGHTING OKRA COOKING SERVICES

                                                         Statement of stockholders’ Equity

Common stock

Retained Earnings

Total Stockholders’ Equity

Beginning balance

250000

34000

284000

Issuance of stock

26000

0

26000

Payment of dividend

0

-12000

-12000

Net income

0

21300

21300

Ending balance

276000

43300

319300

Service Revenue		76000
Expenses:
Postage expense	1550
Legal fees expense	2450
Rent expense	10700
Salaries expense	25000
Supplies expense	15000
Total expenses		54700
Net Income		21300