Final answer:
1. The net income for the year ended December 31, 2015 is $86,000. 2. The total stockholders' equity for the year ended December 31, 2015 is $235,000. 3. The total assets and liabilities for the year ended December 31, 2015 are $505,000 and $214,000 respectively.
Step-by-step explanation:
1. Income Statement:
Service Revenue - New Construction: $450,000
Service Revenue - Remodeling: $280,000
- Service Fee Expense: $73,000
= Total Revenue: $657,000
- Salaries Expense: $160,000
- Supplies Expense: $285,000
- Depreciation Expense: $50,000
- Insurance Expense: $25,000
- Utilities Expense: $42,000
- Interest Expense: $9,000
= Total Expenses: $571,000
Net Income: $657,000 - $571,000 = $86,000
2. Statement of Stockholders' Equity:
Common Stock (including additional issuance): $230,000
Retained Earnings: $31,000
- Dividends: $26,000
Total Stockholders' Equity: $230,000 + $31,000 - $26,000 = $235,000
3. Classified Balance Sheet:
Assets:
- Current Assets:
- Cash: $16,000
- Accounts Receivable: $25,000
- Supplies: $32,000
- Prepaid Insurance: $7,000
= Total Current Assets: $80,000
- Property, Plant, and Equipment:
- Equipment: $625,000
- Less: Accumulated Depreciation: $200,000
= Total Property, Plant, and Equipment: $425,000
Total Assets: $80,000 + $425,000 = $505,000
Liabilities:
- Current Liabilities:
- Accounts Payable: $31,000
- Salaries Payable: $28,000
- Utilities Payable: $5,000
= Total Current Liabilities: $64,000
- Long-Term Liabilities:
- Notes Payable (due in 5 years): $150,000
Total Liabilities: $64,000 + $150,000 = $214,000
Stockholders' Equity:
- Common Stock: $230,000
- Retained Earnings: $31,000
= Total Stockholders' Equity: $261,000
Total Liabilities and Stockholders' Equity: $214,000 + $261,000 = $475,000