Question

Roccos Incorporated reports the following amounts at the end of the year. Cash$6,200Service revenue$72,200 Equipment 19,500 Cost of goods sold (food expense) 54,300 Accounts payable2,500Buildings29,000 Delivery expense 3,500 Supplies 1,500 Salaries expense6,400Salaries payable800 Deferred Revenue5,000Accumulated Depreciation8000 In addition, the company had common stock of $21,000 at the beginning of the year and issued an additional $2,100 during the year. The company also had retained earnings of $12,600 at the beginning of the year and paid dividends of $3,800 during the year. Prepare the income statement, statement of stockholders' equity, and balance sheet.

Answer 1

Roccos Incorporated

a) Roccos Incorporated Income Statement for the year ended Dec. 31:

Service revenue $72,200

Cost of goods sold (food expense) 54,300

Delivery expense 3,500

Salaries expense 6,400 64,200

Net income $8,000

b) Roccos Incorporated Statement of Stockholders' Equity for the year ended December 31:

Common stock $23,100

Retained earnings 16,800

Equity balance $39,900

c) Roccos Incorporated Balance Sheet as of December 31:

Assets:

Cash $6,200

Supplies 1,500 $7,700

Equipment 19,500

Acc. Depreciation 8,000 11,500

Building 29,000 40,500

Total assets $48,200

Accounts payable $2,500

Salaries payable 800

Deferred revenue 5,000 $8,300

Common stock $23,100

Retained earnings 16,800 39,900

Total liabilities + equity $48,200

Step-by-step explanation:

a) Data and Calculations:

Cash $6,200

Service revenue $72,200

Equipment 19,500

Cost of goods sold (food expense) 54,300

Accounts payable 2,500

Buildings 29,000

Delivery expense 3,500

Supplies 1,500

Salaries expense 6,400

Salaries payable 800

Deferred Revenue 5,000

Accumulated Depreciation 8,000

Common Stock 23,100

Retained Earnings 12,600

Common stock of $21,000

Additional issue 2,100

Total common stock $23,100

Retained earnings $12,600

Net income 8,000

Dividends paid (3,800)

Retained earnings $16,800