Rider\'s Inc. Trial Balance December 31,2010 $20,585 2,000 205 1,100 170 54,000

Question

Rider's Inc. Trial Balance December 31,2010 $20,585 2,000 205 1,100 170 54,000 Cash Accounts Receivable Office Supplies Prepaid Rent Prepaid Insurance Office Equipment Accumulated Depreciation; Office Equipment Accounts Payable Interest Payable Income Taxes Payable Note Payable Unearned Revenue Capital Stock Retained Earnings Dividends Client Revenue Office Supplies Expense Depreciation Expense:;Office Expense Rent Expense Insurance Expense Salaries Expense Interest Expense Income Taxes Expense $25,250 1,400 160 1.750 2,000 3,500 20,000 8,000 1,000 60,000 605 8,250 . 5,775 1,010 20,100 360 6,900 Totals $122,060 $122,060 Using the above Trial Balance, compile the following financial statements. Income Statement, Statement of Retained Earnings and Balance Sheet. Be sure to use proper form to earn full credit

Explanation / Answer

Rider's Inc Income Statement For the year ended December 31, 2010 Revenue Client Revenue $60,000 Expenses: Office Supplies $605 Depreciation expenses $8,250 Rent Expenses $5,775 Insurance Expenses $1,010 Salaries Expenses $20,100 Interest Expenses $360 $36,100 Net Income before tax $23,900 Less: Tax $6,900 Net Income $17,000 Rider's Inc Statement of Retained Earnings For the year ended December 31, 2010 Retained Earnings, Jan 1 $8,000 Add: Net Income / (loss) $17,000 $25,000 Less: Dividend $1,000 Retained Earnings, Dec 31 $24,000 Rider's Inc Balance Sheet 31-Dec-10 Asets Current Assets Cash $20,585 Accounts Receivable $2,000 Supplies $205 Prepaid Rent $1,100 Prepaid Insurance $170 Total Current Assets (a) $24,060 Non- Current Assets Equipment $54,000 Less: Acc. Amortization -$25,250 Total Non-Current Assets (b) $28,750 Total Assets (a + b) $52,810 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable $1,400 Interest Payable $160 Income tax Payable $1,750 Unearned Revenue $3,500 Notes Payable $2,000 Total Current Liabilities (a) $8,810 Stockholders' Equity Capital Stock $20,000 Retained Earnings $24,000 Total Stockholders' Equity (b) $44,000 Total Liabilities and Stockholders' Equity (a+b) $52,810

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