P142A similar to Question Help Presented here are the accoun

P1-42A (similar to) Question Help Presented here are the accounts of Golden City Barbershop for the year ended December 31, 2018 Requirements 1. Prepare Golden City\'s Barbershop\'s income statement. 2. Prepare the statement of retained earnings. 3. Prepare the balance sheet Click the icon to view the accounts.) Requirement 1. Prepare Golden City\'s Barbershop\'s income statement. i Data Table Land Notes Payable Property Tax Expense Dividends Rent Expense Salaries Expense Salaries Payable Service Revenue Office Supplies 2017 $31,000 10,000 1,000 11,000 201,900 3,000 20,000 2500 6,700 $ 6,000 Common Stock 28,000 Accounts Payable 2,700 Accounts Receivable 29,000 Advertising Expense 7,000 Building 60,000 Cash 800 Equipment 240,000 Insurance Expense 7,000 nterest Expense Retained Earnings, Dec. 31 48,000 Net Income Print Done

Solution

Income Statement: Service revenue 240000 Less: Expense Property tax expense 2700 Rent expense 7000 Salaries expense 60000 Adveretising expense 11000 Insurance expense 2500 Interest expense 6700 Net income 150100 Statement of Retained earnings: Beginning Balance of RE 48000 Add: Net income for the year 150100 Less: Dividend paid 29000 Ending balance of RE 169100 Balance Sheet Assets Current assets: Cash 3000 Accounts receivable 1000 Office supplies 7000 Total current assets 11000 Property plant and equipment Land 6000 Building 201900 Equipment 20000 Total Property plant and equipment 227900 Total Assets 238900 Liabilities: Current liabilities: Accounts payable 10000 Salaries payable 800 Total current liabilities 10800 Long term liabilities-Notes payable 28000 Total liabilities 38800 Stockholder\'s equity: Common Stock 31000 Retained earning 169100 Total stockholder\'s equity 200100 Total liabilities and stockholder\'s equity 238900