Cornhusker Company provides the following information at the

Cornhusker Company provides the following information at the end of 2018. Cash remaining Rent expense for the year Land that has been purchased Retained earnings Utility expense for the year Accounts receivable from customers Service revenue earned during the year Salary expense for the year Accounts payable to suppliers Dividends paid to shareholders during the year Common stock that has been issued prior to 2018 Salaries owed at the end of the year Insurance expense for the year 2,900 5,100 21,000 10,500 3,000 5,300 27,500 11,400 1,250 1,300 6,000 1,450 1,600 No common stock is issued during 2018, and the balance of retained earnings at the beginning of 2018 equals $5,400. Required 1. Prepare the income statement for Cornhusker Company on December 31, 2018. CORNHUSKER COMPANY ncome Statement For the year ended Decem 31, 2018 Expenses: Total expenses

Solution

Answer

Income Statement

Service Revenue

    27,500

Expenses

Rent Expense

       5,100

Utilities Expense

       3,000

Salary Expense

     11,400

Insurance Expense

       1,600

Total Expenses

    21,100

Net Operating Income

      6,400

Balance Sheet

Assets

Liabilities

Cash

         2,900

Liabilities

Land

       21,000

Accounts Payable

     1,250

Accounts Receivable

         5,300

Outstanding Salaries

     1,450

Total Liabilities

     2,700

Stockholder\'s Equity

Common Stock

    16,000

Retained Earnings

    10,500

Total Stockholder\'s Equity

    26,500

Total Assets

       29,200

Total Stockholder\'s Equity and Liabilities

     29,200

Statement of Stockholder\'s Equity

Common Stock

Retained Earnings

Total Stockholder\'s Equity

Beginning Balance

                 16,000

                         5,400

                                  21,400

Add: Net Income

                                 6,400

                                    6,400

Less: Dividend

                        (1,300)

                                   (1,300)

Ending Balance

                 16,000

                       10,500

                                  26,500

Income Statement
Service Revenue		27,500
Expenses
Rent Expense	5,100
Utilities Expense	3,000
Salary Expense	11,400
Insurance Expense	1,600
Total Expenses		21,100
Net Operating Income		6,400