Safarl File Edit View History Bookmarks Window Help The following accounts and b

Question

Safarl File Edit View History Bookmarks Window Help The following accounts and balances were drawn from the records of Barker Company at Deoember 31 2016 Cash flow from investing act. Prepaid insurance Service revenue Other operating expenses Supplies expense Insurance expense Beginning common stock Cash low from operating act. Common stock issued 750 Beginning retained earnings $20,000 5,700 2,700 4,800 10,400 20,000 4,900 6,800 (6,800) Cash flow from financing act. 2,800 Rent expense 76,000 Dividends 41,000 Cash 200 Accounts receivable ,000 Prepaid rent 7,000 5,500 Accounts payable Land 18,150 Use the accounts and balances from Barker Company to construct an income statement. Income Statement For the Year Ended December 31, 2016 Revenue Total revenue Expenses Total expenses esc 80 F2

Explanation / Answer

Comparative Balance Sheets 2016 Assets Cash 10,400 Accounts receivable 20,000 Prepaid rent 4,900 Supplies 750 Prepaid Insurance 2,800 Total current assets 38,850 Land 39,000 Total assets 77,850 Liabilities and Equity Accounts payable 18,150 unearned revenue 6,800 Total current liabilities 24,950 Total liabilities 24,950 Equity Common stock, $5 par value 6,600 Retained earnings 46,300 Total liabilities and equity 77,850 Income Statement For Year Ended Dec 31,2016 Sales 76,000 Cost of goods sold 0 Gross profit 76,000 Operating expenses Depreciation expense 0 Supplies 200 Insurance Exp 1,000 Rent Expenses 2,700 Other expenses 41,000 -44,900 Other gains (losses) Interest Exp 0 Gain on sale of equipment Income before taxes 31,100 Income taxes expense 0 Net income 31,100 Statement of Change in Stockholder's Equity Beg Common Stock 1,100 Issue of Shares          5,500 Ending Common Stock          6,600 Beg Retained Earning 20,000 Add: Profit for the year 31,100 Less: Dividend Paid 4,800 Closing Balance 46,300 Cash Flow Statement    Income from Operating Activities              7,000 Income from Investing Activities            -6,800 Income from Financing Activities              5,700 Net Change in Cash           5,900 opening Balance        4,500 Ending Cash Balance            10,400

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