Answer:
Goldie Company
a) Income Statement for the year ended December 31:
Fees for services $123,000
Miscellaneous expenses 9,000
Interest expense 3,700
Salaries expense 71,500
Supplies expense 8,500
Rent expense 11,100 $103,800
Net income 19,200
b) Balance Sheet as of December 31:
Assets:
Cash on hand $11,600
Accounts receivable 17,400
Supplies on hand 3,300
Equipment 92,700
Total assets $125,000
Liabilities and Equity:
Accounts payable $17,800
Notes payable 25,000
Common stock 55,000
Retained earnings 27,200
Total liabilities & equity $125,000
Explanation:
a) Data and Calculations:
Trial balance as of December 31:
Account Titles Debit Credit
Cash on hand $11,600
Accounts receivable 17,400
Supplies on hand 3,300
Equipment 92,700
Accounts payable $17,800
Notes payable 25,000
Common stock 55,000
Retained earnings 8,000
Fees for services 123,000
Miscellaneous expenses 9,000
Interest expense 3,700
Salaries expense 71,500
Supplies expense 8,500
Rent expense 11,100
Totals $228,800 $228,800
Retained Earnings at January 1 = $8,000 (27,200 - 19,200)
Net income 19,200
Retained Earnings at December 31 $27,200
