Question

Using the following​ information, complete the income​statement, statement of retained​ earnings, and balance sheet for

LUV Painting for the month of March 2018. The business began operations on March ​1,2018.

Accounts Receivable $1,800
Salaries Expense $1,300
Accounts Payable 1,400
Service Revenue 10,500
Cash 23,500
Office Supplies 1,900
Stock issued during March 40,000
Truck 18,680
Dividends paid during March 4,500
Utilities Expense 220

Answer 1

Gross profit = $8980

Retained earning (end) = $4480

Step-by-step explanation:

LUV

Income Statement

For the m/o march 1,2018

$

Service revenue = 10500

less: Operating expense

Salaries expense 1300

Utilities expense 220

= (1520)

Gross profit 8980

LUV

Balance sheet

as on march 1,2018

ASSETS: $

Current Asset:

Cash = 23500

Account receivable = 1800

Office supplies = 1900

27200(a)

Fixed Asset:

Truck = 18680(b)

Total Assets (a+b) = 45880

LIABILITIES:

Account payable = 1400 (c)

STOCKHOLDERS EQUITY:

Issued stocks = 40000

Add: income = 8980

less: Paid dividend = (4500)

44480(d)

Total Stock holders asset and liabilities (c+d) = 45880.

LUV

Statement of retained Earning

as on march 1,2018

$

Retained earning (open) = 0

Add: Net income = 8980

less: Dividend = (4500)

Retained earning (end) 4480