Answer and Explanation:
The presentation of the financial statement is as follows:
Income Statement
Revenues
Product revenues $112,500
License Revenues $250
Total Revenues (A) $112,750
Expenses
Salaries $62,800
Discount on Notes Payable $7,950
Interest expense $4,000
Depreciation expenses $3,210
Income Tax Expenses $3,650
Cost of Goods Sold $17,400
Utilities $350
Advertising Expenses $11,300
Total Expenses (B) $110,660
Net Income (A-B) $2,090
Stockholders’ Equity
Statement of Stockholder's Equity
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Particulars Common Stock Retained Earning
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Opening Balance $75,000 $20,700
Add: Issue $5,000
Add: Net Income $2,090
Less: Dividend ($2000)
Closing Balance $80,000 $20,790
Balance Sheet
A. Stockholder's Equity
Common Stock $80,000
Retained Earning $20,790
Treasury Stock (650)
Total $100,140
B. Liabilities
Mortgage Payable $38,000
Taxes Payable $1,020
Notes & Mortgage payable $2,200
Accounts payable $18,500
Notes Payable $25,650
Wages Payable $3,200
Total liabilities $88,570
Total Stockholders' Equity and Liabilities $188,710
C. Assets
Equipment $42,000
Building $79,000
Land $40,000
Accumulated Depreciation (21730)
Net Accounts Receivables $23,500
Cash $16,140
Inventory $6,400
Short Term Investments $2,500
Prepaid Expense $900
Total Assets $188,710
