Answer:
Part a) Net Income for the year $27,585
Part b) Balance of Retained Earnings for the year $79,400
Part c) Total Assets as the December 31 $185,100
Explanation:
<u>Part a)</u>
Equilibrium Riding Inc.
Income Statement for the year ended as of 31 December
Service Revenue $33,500
Less Expenses
Wages Expense $4,800
Repairs and Maintenance Expense $830
Office Expenses $285
Net Revenue $27,585
<u>Part b)</u>
Equilibrium Riding Inc.
Statement of changes in Equity for the year ended as of 31 December
Retained Earnings at the beginning of the period $51,815
Add: Net income for the year $27,585
Less Dividends $0
Retained earnings at the end of the period $79,400
<u>Part c)</u>
Equilibrium Riding Inc.
Balance Sheet as at 31 December
<u>Assets</u>
<u>Non-Current Assets</u>
Equipment $78,750
Land $26,550
<u>Current Assets
</u>
Accounts Receivable $5,200
Cash $69,600
Prepaid Insurance $5,000
Total Assets $185,100
Equity and Liabilities
<u>Owners Equity </u>
Common Stock $5,000
Retained Earnings $79,400
<u>Non Current Liabilities
</u>
Notes Payable (long-term) $66,000
<u>Current Liabilities </u>
Accounts Payable $32,600
Unearned Revenue $2,100
Total Equity and Liabilities $185,100