Answer:
Fast Track, Inc.
Income Statement
For the year ended December 31, 2019
Revenues:
Consulting fees revenue $19,200
Expenses:
- Office supplies expense $600
- Rent expense $2,400
- Salary expense $6,900
- Depreciation expense $500
- Telephone expense $250 <u>($10,650)</u>
Net income $8,550
Fast Track, Inc.
Statement of Retained Earnings
For the year ended December 31, 2019
Beginning balance September 1, 2019 $0
Net income <u>$8,550</u>
Subtotal $8,550
Dividends <u>($2,300)</u>
Ending balance December 31, 2019 $6,250
Fast Track, Inc.
Balance Sheet
For the year ended December 31, 2019
<h2> ASSETS</h2>
Current assets
Cash $9,500
Accounts receivable $2,200
Office supplies $1,750
Prepaid expenses $1,000
Total current assets $14,450
Property, plant and equipment
Office equipment $20,000
Accumulated depreciation ($500)
Total P, P & E $19,500
Total assets $33,950
<h2> LIABILITIES AND EQUITY</h2>
Current liabilities
Unearned revenue $500
Accounts payable $2,200
Total liabilities $2,700
Equity
Common stock $25,000
Retained earnings $6,250
Total equity $31,250
Total liabilities + equity $33,950
