Company records show the following information after all transactions are record
ID: 2760626 • Letter: C
Question
Company records show the following information after all transactions are recorded for 2015:
Notes payable
$ 25,000
Supplies inventory
$ 8,000
Service fees earned
130,000
Cash
10,000
Supplies expense
10,000
Advertising expense
3,500
Insurance expense
5,000
Salaries expense
12,500
Miscellaneous expense
1,200
Rent expense
18,000
Common stock, January 1
20,000
Retained earnings, January 1
12,500
Accounts payable
7,000
Accounts receivable
4,000
Dividends paid
5,000
Equipment
20,000
The complany raised $12,000 cash through the issuance of additional common stock during the year.
Based on this information, calculate the following ending balances for the year ending December 31, 2015:
Common stock
Retained earnings
Total equity
Notes payable
$ 25,000
Supplies inventory
$ 8,000
Service fees earned
130,000
Cash
10,000
Supplies expense
10,000
Advertising expense
3,500
Insurance expense
5,000
Salaries expense
12,500
Miscellaneous expense
1,200
Rent expense
18,000
Common stock, January 1
20,000
Retained earnings, January 1
12,500
Accounts payable
7,000
Accounts receivable
4,000
Dividends paid
5,000
Equipment
20,000
Explanation / Answer
Income Statement
Service fees Earned
$130000
Supplies Expense
$10000
Insurance Expense
$5000
Miscellaneous Exp.
$1200
Advertising Expense
$3500
Salaries Expense
$12500
Rent Expense
$18000
Total Expense
$50200
Net Income
$79800
Statement of Changes in Equity
Common Stock
Retained Earnings
Total Equity
Opening Balance
$20000
$12500
$32500
Additional Issuance of Common Stock
$12000
$12000
Net Income
$79800
$79800
Dividends
($5000)
($5000)
$32000
$74800
$106800
Income Statement
Service fees Earned
$130000
Supplies Expense
$10000
Insurance Expense
$5000
Miscellaneous Exp.
$1200
Advertising Expense
$3500
Salaries Expense
$12500
Rent Expense
$18000
Total Expense
$50200
Net Income
$79800
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