Question

Use the information below to answer the following questions: Common Stock: $17,000 Service Revenue: $20,000 Notes Payable: $5,000 Salaries Expense: $10,000 Accounts Receivable: $7,000 Ending Retained Earnings: $26,000 Supplies: $2,000 Insurance Expense: $1,500 Prepaid Insurance: $3,000 Utilities Expense: $4,000 Office Equipment: $16,000 Accounts Payable: $4,000 Cash: $24,000.

An income statement prepared for the year ended December 31 2013 would reflect Net Income of how much?

A Balance Sheet prepared as of December 31, 2013 would reflect total Assets of how much?

A Balance Sheet prepared as of December 31, 2013 would reflect total Liabilities of how much?

A Balance Sheet prepared as of December 31, 2013 would reflect total Stockholders' Equity of how much?

Answer 1

Please see details bellow:

Step-by-step explanation:

BALANCE SHEET

Assets

Cash $24.000

Accounts Receivable $7.000

Prepaid Insurances $3.000

Office Equipment $16.000

Inventory $2.000

TOTAL ASSETS 52.000

Liabilities

Accounts Payable $4.000

Notes Payable $5.000

TOTAL LIABILITIES $9.000

Equity

Common Stock $17.000

Retained Earnings $26.000

TOTAL EQUITY $43.000

INCOME STATEMENT

Sales $20.000

Salaries Expenses -$10.000

Insurances Expenses -$1.500

Utilities Expenses -$4.000

Net Income $4.500