Good afternoon, What would be the best way to figure out what goes on the balanc

Question

Good afternoon,

What would be the best way to figure out what goes on the balance sheet and Income Statement? here is my problem below:

Given are the amounts of assets, liabilities, owner’s equity, revenues, and expenses of AQUA Inc. at 12/31/10. The beginning amount of Retained Earnings at 1/1/10 was $20,000, and during the year Dividends of $60,000 were taken out by the owners of Aqua Inc. Prepare the yearend Balance Sheet and Income Statement for AQUA LLP at the end of the year.

(Include Correct Headings)

Accounts Payable $59,000 Land                                         $78,000

Accounts Receivable                    15,000 Unearned Revenue                       45,000

Advertising Expense                    13,000             Utilities Expense                            5,000

Building 160,000 Rent Expense                               13,000

Cash 140,000 Operating Expenses 23,000

Supplies 10,000             Common Stock 240,000            

Salary payable                               2,000             Accumulated Depreciation             10,000

Prepaid Insurance Expense 20,000              Service Revenue                         170,000

Interest Expense                            9,000             Retained Earnings                                  ?  

Explanation / Answer

BALANCE SHEET For the year Ended 31st December 2010 Amount Amount FIXED ASSETS Building $1,60,000 Less : Accumulated Depreciation $10,000 Building - Net $1,50,000 Land $78,000 CURRENT ASSETS Accont Receivable $15,000 Cash $1,40,000 Supplies $10,000 Prepais Insurance Expenses $20,000 TOTAL OF ASSETS $4,13,000 LIABILITIES AND ONWER'S EQUITY Amount Amount CURRENT LIABILITIES Account Payable $59,000 Unearned Revenue $45,000 Salary Payable $2,000 $1,06,000 STOCK OWNER'S CAPITAL Common Stock $2,40,000 Retained Earnings $67,000 TOTAL OF SHAREHOLDERS EQUITY $3,07,000 TOTAL OF EQUITY AND LIABILITIES $4,13,000 INCOME STATEMENT Amount Amount Service Revenue (A) $1,70,000 Less : Expenses Operating Expenses $23,000 Advertising Expenses $13,000 Interest Expenses $9,000 Utilities Expenses $5,000 Rent Expenses $13,000 Total Expenses (B) $63,000 Net Revenue (A-B) $1,07,000 NOTE: 1 - CALCULATION OF THE RETAINED EARNING Opening Retained Earning $20,000 Add: Profit of the year $1,07,000 Less: Dividend Paid $60,000 Net Balance in Retained Earning $67,000

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