Tybalt invested $5,000 cash in the business in exchange for more common stock du

Question

Tybalt invested $5,000 cash in the business in exchange for more common stock during year 2013 (the December 31, 2012. credit balance of retained earnings was $I21,400) Tytsak Construction is required to make a $7,000 payment on its long-term notes payable doing 2014 Required: Prepare the income statement for the calendar year 2013. 1.2 Prepare the statement of retained earnings for the calendar year 2013. Prepare the classified balance sheet at December 31.2013. Prepare the necessary closing entries at December 31. 2013. Closing entries (all dated December 31. 2013): Use the information in the financial statements to compute the following ratios:

Explanation / Answer

Income Statement for year,2013 Particulars Amt. Debit Particulars Amt. Credit Depreciation Expense Building            11,000 Professional Fees Earned      97,000.00 Depreciation Expense Equipment              6,000 Interest Earned        2,100.00 Wages Expense            32,000 Rent Earned      14,000.00 Interest Expense              5,100 Dividend Earned              2,100 Insurance Expense            10,000 Rent Expense            13,400 Supplies Expense              7,400 Postage Expense              4,200 Property Taxes Expense Expense              5,000 Repairs Expense              8,900 Telephone Expense              3,200 Utility Expense              4,600 Net Profit C/f        4,400.00 1,15,200.00 1,15,200.00 Statement of Retained Earnings for the year ended 2013 Retained Earnings 1,21,400.00 Add Net Income        4,400.00 Less Dividend Paid    -13,000.00 Retained Earnings at 2013 1,12,800.00 Balance Sheet as on 2013 Assets   Liabilities Amount Cash        5,000.00 Account Payable      16,500.00 ShortTerm Investment      23,000.00 Interest Payable        2,500.00 Supplies        8,100.00 Rent Payable        3,500.00 Prepaid Insurance        7,000.00 Wages Payable        2,500.00 Equipment      40,000.00 Property Taexs Payable            900.00 Accumulated Dep on Equipment    -20,000.00 Unearned Professional Fees        7,500.00 Depreciation Expense Equipment       -6,000.00 Building 1,50,000.00 Long Term Note Payable      67,000.00 Accumulated Dep on Building    -50,000.00 Retained Earnings 1,21,400.00 Depreciation Expense Building    -11,000.00 Less : Divident Paid    -13,000.00 Land      55,000.00 Common Stock        5,000.00 Construction work        7,000.00 Add : Net Profit        4,400.00 Cash Invested        5,000.00 2,13,100.00 2,18,200.00

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