On December 1 organization had a beginning retained earnings

On December 1\" organization had a beginning retained earnings balance of $320,000 on December 1st. Lastly, on December 31, 20 common stock , 2017, James Corporation had common stock investments of $50,000. In addition, the 17 the corporation paid out dividends of $40,000 and no additional investments in were made throughout the month of December The following are assets, liabilities, revenues, and expenses for the organization as of Dcmber 2017. Utility expense Equipment Advertising expense Accounts payable Service revenue Maintenance expense Gasoline expense Accounts receivable Notes payable Cash Rent expense Payroll expense 8,000 140,000 5,000 50,000 440,000 5,000 12,000 65,000 75,000 629,000 17,000 14,000 Required: Prepare an Income Statement, Balance Sheet, and Statement of Stockholders\' Equity for December 31, 2017.

Solution

JAMES CORPORATION Income Statement For the Month Ended December 31, 2017 Service revenue 440000 Less: Operating expenses Utility expense 8000 Advertising expense 5000 Maintenance expense 5000 Gasoline expense 12000 Rent expense 17000 Payroll expense 14000 Total operating expenses 61000 Net income $ 379000 JAMES CORPORATION Statement of Retained Earnings For the Month Ended December 31, 2017 Retained Earnings, December 1 320000 Add: Net income 379000 699000 Less: Dividends -40000 Retained Earnings, December 31 659000 JAMES CORPORATION Balance Sheet As at December 31, 2017 Assets Cash 629000 Accounts receivable 65000 Equipment 140000 Total assets $ 834000 Liabilities and Stockholders\' Equity Liabilities Accounts payable 50000 Notes payable 75000 Total liabilities 125000 Stockholders\' Equity Common stock 50000 Retained earnings 659000 Total stockholders\' equity 709000 Total liabilities and stockholders\' equity $ 834000