APPLY THE CONCEPTS: Construct the income statement Christina Co. has compiled th

Question

APPLY THE CONCEPTS: Construct the income statement Christina Co. has compiled the following account balances from its general ledger on July 31, 2011 (the last day of its fiscal year) Account Cash Accounts Receivable Building Equipment Land Prepaid Insurance Vehicles Accounts Payable Notes Payable Capital Stock Retained Earnings Dividends The balance in the Retained Earnings account reflects the account balance before temporary accounts are closed Use the information given to prepare the following financial statements. Amount Account $62,870 151,000 80,000 322,960 116,310 25,500 85,710 64,970 115,730 200,000 276,560 53,740 Fees Earned Rent Revenue Advertising Expense Insurance Expense Rent Expense Miscellaneous Expense Wages Expense Utilitles Expense Commissions Expense Interest Expense Research & Development Expense Amount $3,392,070 20,580 18,000 18,600 19,800 20,100 476,230 40,570 2,390,960 15,550 172,010 Construct Christina's single-step income statement for 2011

Explanation / Answer

Christina Co. Income statement for the year ending July31, 2011 Fee earned 3392070 Rent Revenue 20580 Total revenue 3412650 Expenses: Comision expense 2390960 Wages expense 476230 Research and development expense 172010 Utilities expense 40570 Miscellaneous expense 20100 Rent expense 19800 Insurance expense 18600 Advertising expense 18000 Interest expense 15550 Total Expenses 3171820 Net Income 240830 Christina Co. Balance sheet as at July 31, 2011 Assets Cash 62870 Accounts receivable 151000 Prepaid insurance 25500 Current assets 239370 Building 80000 Equipment 322960 Land 116310 Vehicles 85710 Total Assets 844350 Liabilities and equity Accounts Payable 64970 Notes payable 115730 Total liabilities 180700 Stockholders' equity Capital stock 200000 Retained earnings 463650 Total stockholders' equity 663650 Total liabilities and equity 844350

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