Document1 Word ew View Help Tell me what you want to do 1 Normal No Spac.. Headi

Question

Document1 Word ew View Help Tell me what you want to do 1 Normal No Spac.. Heading 1 Heading 2 Title Paragraph Styles Pina Corporation began operations on January 1, 2018. The following information is available for Pina Corporation on December 31, 2018 $6,000 2,000 Accounts payable $6,000 Bank loan payable 2,000 Rent expense 4,000 Retained earnings (Dec. 31) 3,900 Salaries expense Accounts receivable Advertising expense Cash Common shares (Dec. 31) 14,000 Service revenue Dividends declared Equipment Income tax expense Prepare a statement of financial position for Pina Corporation. (List Assets in order of liquidity.) 27,000 1,900 1,700 3,500 Supplies 26,200 Supplies expense 1,800

Explanation / Answer

Pina Corporation Pina Corporation Income Statement Balance Sheet as on Dec.31,2018 for the year ended December 31,2018 Assets Liabilities and Equity Revenue Current assets Current Liabilities Service Revenue $27,000.00 Cash $3,900 Accounts Payable $6,000 Less : Expenses Accounts Receivable $2,000 Advertising Expenses $4,000.00 Supplies $1,900 Total $6,000 Rent expense $2,000.00 Total $7,800 Long term debt Salaries Expense $6,000.00 Fixed Assets Bank Loan payable $6,000 Supplies Expense $1,700.00 Equipment $26,200 Total Expenses $13,700.00 Owner's Equity Profit before Tax $13,300.00 Common stock $14,000 Less : Income Tax Expense $1,800.00 Retained Earnings $8,000 Net Income $11,500.00 Total Equity $22,000 Total assets $34,000 Total Liabilities and Equity $34,000 Retained earnings as on Dec.31,2018 = Net Income - Dividend declared = $11500 - $3500 = $8000

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