Question

Use the information below to answer the following questions: Common Stock: $17,000 Service Revenue: $20,000 Notes Payable: $5,000 Salaries Expense: $10,000 Accounts Receivable: $7,000 Ending Retained Earnings: $26,000 Supplies: $2,000 Insurance Expense: $1,500 Prepaid Insurance: $3,000 Utilities Expense: $4,000 Office Equipment: $16,000 Accounts Payable: $4,000 Cash: $24,000.
An income statement prepared for the year ended December 31 2013 would reflect Net Income of how much?

A Balance Sheet prepared as of December 31, 2013 would reflect total Assets of how much?

A Balance Sheet prepared as of December 31, 2013 would reflect total Liabilities of how much?

A Balance Sheet prepared as of December 31, 2013 would reflect total Stockholders' Equity of how much?

Answer 1

Answer:

Please see details bellow:

Explanation:

BALANCE SHEET

Assets  

Cash  $24.000  

Accounts Receivable  $7.000  

Prepaid Insurances  $3.000  

Office Equipment  $16.000  

Inventory  $2.000  

TOTAL ASSETS   52.000  

Liabilities  

Accounts Payable   $4.000  

Notes Payable   $5.000

TOTAL LIABILITIES   $9.000  

Equity  

Common Stock   $17.000  

Retained Earnings  $26.000  

TOTAL EQUITY   $43.000  

INCOME STATEMENT

Sales  $20.000  

Salaries Expenses    -$10.000  

Insurances Expenses -$1.500  

Utilities Expenses   -$4.000  

Net Income  $4.500