t t t 5 of T 0 Problem 35A Prepare financial statements from

5 (of T 0. Problem 3-5A Prepare financial statements from an adjusted trial balance when net income is positive 103-5) Boilermaker Unlimted specializes in buiding new homes and remodeling existing homes Remodeling projects include addang game rooms.changing k UNLIMITED Adjusted Trial Balance December 31, 2018 S 16,000 25,000 32,000 7,000 625,000 31,000 28,000 5,000 150,000 200,000 31,000 Payable 26,000 450,000 Service R 160,000 285,000 50,000 25,000 42,000 9,000 73,000 Totals $1,375,000 $1,375,000

Solution

1 Income statement Service revenues: New construction 450000 Remodelling 280000 Total revenues (A) 730000 Expenses: Salaries expenses 160000 Supplies expenses 285000 Depreciation expenses 50000 Insurance expense 25000 Utilities expenses 42000 Interest expenses 9000 Service fee expenses 73000 Total expenses (B) 644000 Net income (A)-(B) 86000 2 Statement of stockholder\'s Equity Common Stock Retained Earnings Total Stockholder\'s Equity Balance at Jan 1. 200000 31000 231000 Net income 0 86000 86000 Dividends 0 -26000 -26000 Balance at Dec 31. 200000 91000 291000 3 Balance sheet Assets Amount Liabilities Amount Current assets: Current liabilities: Cash 16000 Accounts payable 31000 Accounts receivable 25000 Salaries payable 28000 Supplies 32000 Utilities payable 5000 Prepaid insurance 7000 Total current liabilities 64000 Total current assets 80000 Long-term liabilities: Long-term assets: Notes payable 150000 Equipment 625000 Stockholder\'s equity: Less:Accumulated depreciation 200000 425000 Common stock 200000 Retained earnings 91000 Total Stockholder\'s equity 291000 Total assets 505000 Total Liabilities & Stockholder\'s equity 505000