Financial Statements For the Year Ended December 31, 2016 Income Statement Expen

Question

Financial Statements For the Year Ended December 31, 2016 Income Statement Expenses Required Information The SoWowing information applies to tme questions displayed below The tollowing transactions pertain to Smith Training Company for 2016 Total expenses Statement of Changes in Stockholders Equity Established the business when it acquired $48,000 cash from the 1ssue of common stock Feb 1 Paid rent for office space foe two years, $15.800 cadth Apk 10 Purchased $860 of supples on account July 1 Recelved $25.000 cash in advance for services to be provided over the next year 20 Pald $645 of the accounts payable from Apni s0 g 15 Biled a customer $9,500 for services provided duning August Sept 15 Completed a job and receved $3,00 cash for services rendered Totall Stockholders' Equity Oct 1 Paid employee salares of $31,500 cash 15 Recelved $0,400 cash frem accounts recetvable Balled customers S 34.500 for services rendered on account 1 Pald a drvidend of $1,200 cash to the stockholders 1 Adjusted recoeds to recognize the services provided on the contract of July t 31 Recorded $2.350 of accred salertes as of December 31 31 Recorded the rent expense for the year (See February 1) 31 Physically counted suppes $80 was on hand at the end of the penod Nov Dec Balance Sheet As of Dec 31,2016 Assets Total assels Liabilities Total liablities

Explanation / Answer

Income statement

   for the year ended Dec.31 ,2016

Revenue:

Service revenue = 72100

Expenses:

salaries expenses = 33850

Rent expense = 7242

Supplies expense =    780

Tota Expenses = 41872

Net income = $30228

Statement of changes in stockholder's equity

Common stock issued during the year = 48000

Add: Net income = 30228

less: Dividend = (1200)

Total stockholder's equity = 77028

Balance sheet

As of December 31,2016

Assets

Cash 36355

supplies 80

Prepaid rent 8558

Accounts receivable    34600

Total Assets 79593

Liabilities

Accounts payable 215

Salaries payable 2350

Shareholder's equity    77028

Total liabilities and Shareholder's equity 79593

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