Create a statement of retained earnings TOTAL LIABILITIES & EQUITY 50,728.79 ASS

ID: 2727213 • Letter: C

Question

Create a statement of retained earnings

TOTAL LIABILITIES & EQUITY

50,728.79

ASSETS Current Assets Checking/Savings 1000 · Rushing Yard Service- Checking 4,330.57 1050 · Petty Cash 200.00 Total Checking/Savings 4,530.57 Accounts Receivable 1200 · Accounts Receivable 2,969.25 Total Accounts Receivable 2,969.25 Other Current Assets Computer 235.70 1300 · *Inventory Asset 1,130.77 1350 · Prepaid Insurance 705.00 1325 · Office Supplies 69.00 Total Other Current Assets 2,140.47 Total Current Assets 9,640.29 Other Assets 1900 · Security Deposit 1,000.00 Property, plant and equipment 1500 · Lawn and Landscaping Equipment 4,500.00 1600 · Leasehold Improvement 850.00 1700 · Office Equipment 787.50 17000 · Accumulated Depreciation -4,249.00 1800 · Truck 18,200.00 1850 · Truck with Snow Plow 20,000.00 Total Fixed Assets 40,088.50 TOTAL ASSETS 50,728.79 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2000 · Accounts Payable 160.00 Total Accounts Payable 160.00 Credit Cards 2050 · Credit Card Payable 617.02 Total Credit Cards 617.02 Other Current Liabilities 2010 · Interest Payable 71.23 2100 · 401k Payable 138.36 2110 · FICA Payable 529.20 2125 · Wages Payable 178.00 2100 Taxes Payable 217.75 2130 · FUTA PAYABLE 92.71 2140 · Health Insurance Payable 1,740.00 2160 · SUTA PAYABLE 141.83 2170 · SWT Withholding 67.80 2190 · Current Long-Term Liability 3,550.23 Total Other Current Liabilities 6,727.11 Total Current Liabilities 7,504.13 Long Term Liabilities 2180 · Notes Payable 15,375.10 Total Long Term Liabilities 15,375.10 Total Liabilities 22,879.23 Equity 3000 · Rushing Capital 58,200.00 3100 · Rushing Draw -15,613.52 Net Income -14,736.92 Total Equity 27,849.56

TOTAL LIABILITIES & EQUITY

Income Snow Plowing Income 3,600.00 4000 · Fertilizing Income 324.00 4100 · Landscaping Services 10,080.00 4200 · Lawn Cutting and Trimming 16,345.00 4300 · Mulch Sales 4,370.00 4400 · Nursery Stock Income 816.75 4500 · Seeding Income 630.00 4600 · Topsoil Sales 1,344.00 4410 · Sales Discount -492.78 Total Income 37,016.97 Cost of Goods Sold 6400 · Field Labor 12,389.25 5000 · Fertilizing Costs 282.73 5100 · Mulch Costs 3,657.50 5200 · Nursery Stock Costs 449.60 5300 · Purchase Discounts -135.57 5400 · Seeding Costs 541.30 5500 · Topsoil Costs 1,120.00 Total COGS 18,304.81 Gross Profit 18,712.16 Expense Miscellaneous Expense 163.17 6000 · 401K Employer Contribution 229.68 60000 · Advertising and Promotion 27.00 6100 · Auto and Truck Expenses 1,724.00 6200 · Bank Service Charges 180.00 62400 · Depreciation Expense 4,249.00 6300 · FICA Tax Expense 1,508.20 6210 · Bad Debt 265.00 64300 · Meals and Entertainment 67.50 6500 · FUTA TAX EXPENSE 92.71 6600 · Health Insurance - Employer 1,740.00 66000 · Payroll Expenses 0.00 6650 · Holiday Gift Expense 35.32 6700 · Insurance Expense 2,115.00 6800 · Office Supplies Expense 792.20 68400 · Travel Expense 900.00 6900 · Office Wages 7,504.00 7000 · Rent Expense 7,500.00 7100 · Repairs and Maintenance 390.35 7200 · Small Tools and Equipment 960.98 7300 · SUTA TAX EXPENSE 808.34 7400 · Telephone Expense 380.00 7500 · Utilities 1,500.00 Total Expense 33,132.45 Net Ordinary Income -14,420.29 Other Income/Expense Other Income 8000 · Miscellaneous Income 40.00 Total Other Income 40.00 Other Expense 63400 · Interest Expense 356.63 Total Other Expense 356.63 Net Other Income -316.63 -14,736.92

50,728.79

Explanation / Answer

The balance sheet and income statement provided in the question are for a Sole proprietorship because there arec capital and drawings instead of share capital. In case of sole proprietorship, owner's equity statement is prepared rather than the statement of retained earning which is prepared in case of company.

Owner's equity statement

Rushing capital

$ 58,200.00

Less: Rushing drawings

-$ 15,613.52

Less: Net loss

-$ 14,736.92

$ 27,849.56