Answer:
These can be prepared as shown below:
Explanation:
1. Prepare a statement of stockholder equity for the year ends December 31, 2018, assuming no common stock was issued during 2018.
To do this, the income statement is first prepared by ignoring tax as follows:
Fightin' Blue Hens Corporation
Income Statement 
for the year ended December 31, 2018.
Details                                                                    $
Service Revenue                                           300,000
Salaries Expense                                         (200,000) 
Rent Expense                                                  (10,000)
Depreciation Expense                                   (20,000) 
Interest Expense                                           <u>   (3,000) </u>
Earnings for the year                                   <u>   67,000 </u>
Therefore, we have:
Fightin' Blue Hens Corporation 
Statement of Stockholder Equity 
for the year ends December 31, 2018
Details                                                                    $
Common stock                                               100,000
Retained Earnings                                           40,000
Earnings for the year                                    <u>   67,000</u>
Stockholder Equity                                      <u> 207,000 </u>
2. Prepare a classified balance sheet as of December 31, 2018.
A balance sheet is a balance sheet that have different classifications suchas fixed assets, current assets and liabilities, long-term liabilities, and stockholder equity. This can be prepared as follows:
Fightin' Blue Hens Corporation 
Classified Balance Sheet 
for the year ends December 31, 2018
Details                                                          $                   $
<u>Fixed Assets</u>
Equipment                                           200,000 
Accumulated Depreciation              <u>   (115,000) </u>     
Net Fixed Assets                                                          85,000  
<u>Current Assets</u>
Cash                                                        10,000 
Accounts Receivable                           130,000 
Prepaid Rent                                            4,000 
Supplies                                               <u>  20,000 </u>
Total current assets                             164,000
<u>Current Liabilities</u>
Accounts Payable                                (10,000)
Salaries Payable                                    (9,000)
Interest Payable                                   <u>  (3,000) </u>
Working capital                                                            142,000
<u>Long-term Liabilities</u> 
Notes Payable (due in two years)                              <u> (20,000) </u>
Net Total Assets                                                         <u> 207,000</u>
Financed by:
Common stock                                                              100,000
Retained Earnings                                                          40,000
Earnings for the year                                                   <u>   67,000</u>
Stockholder Equity                                                      <u> 207,000 </u>
Note: When a balance sheet is accurately prepared, the net total assets and the stockholder equity must be equal as above with both equaling $207,000.