Prepare an income statement for 2013 Prepare a statement of

Prepare an income statement for 2013.

Prepare a statement of retained earnings for 2013.

Prepare a balance sheet for 2013.

Prepare a statement of cash flows for 2013. (Amounts to be deducted should be indicated by a minus sign.)

What amount of total assets have been financed by the creditors and by the stockholders?

Did the retained earnings at September 30, 2013, arise primarily from current year earnings or earnings retained from prior years?

Accounts Payable	$	53,000
Accounts Receivable		30,800
Cash (balance on January 1, 2013)		108,900
Cash (balance on September 30, 2013)		93,000
Common Stock		149,000
Dividends		0
Equipment		144,700
Income Tax Expense		10,900
Interest Expense		30,300
Inventory		18,000
Notes Payable		30,900
Prepaid Rent		7,800
Office Expense		15,100
Retained Earnings (beginning)		10,300
Salaries and Wages Expense		36,500
Service Revenue		153,800
Utilities Expense		25,900
Salaries and Wages Payable		16,000

Solution 1:

Solution 2:

Solution 3:

Solution 4:

Income Statement - 2013
Particulars	Amount
Service Revenue	$153,800.00
Less: Expenses
Salaries and Wages Expense	$36,500.00
Utility expense	$25,900.00
Office Expense	$15,100.00

Earning Before Interest and Tax (EBIT)	$76,300.00
Less: Interest Expense	$30,300.00
Earning Before Tax	$46,000.00
Less: Income Tax Expense	$10,900.00
Earning After Tax	$35,100.00