College Painters had the following account balances at 12/31/08. Full service re
ID: 2388587 • Letter: C
Question
College Painters had the following account balances at 12/31/08.
Full service revenue
100,000
Prepaid Rent
1,000
Retained earnings, January 1, 2008
15,000
Painting supplies expense
18,000
Note payable, due June 2009
5,000
Cash
12,000
Salaries payable
2,500
Note payable, due January 1, 2010
8,500
Equipment
40,000
Employee advances receivable
2,000
Advertising expense
3,500
Salaries expense
40,000
Accounts payable
4,000
Accumulated depn - equipment
5,000
Painting prep revenue
15,000
Rent and utilities expense
15,000
Office supplies expense
1,000
Common Stock
2,500
Accounts receivable
25,000
Prepare, in good form, a classified balance sheet as of 12/31/08 and an income statement and a statement of
retained earnings for the year then ended.
College Painters had the following account balances at 12/31/08.
Full service revenue
100,000
Prepaid Rent
1,000
Retained earnings, January 1, 2008
15,000
Painting supplies expense
18,000
Note payable, due June 2009
5,000
Cash
12,000
Salaries payable
2,500
Note payable, due January 1, 2010
8,500
Equipment
40,000
Employee advances receivable
2,000
Advertising expense
3,500
Salaries expense
40,000
Accounts payable
4,000
Accumulated depn - equipment
5,000
Painting prep revenue
15,000
Rent and utilities expense
15,000
Office supplies expense
1,000
Common Stock
2,500
Accounts receivable
25,000
Prepare, in good form, a classified balance sheet as of 12/31/08 and an income statement and a statement of
retained earnings for the year then ended.
Explanation / Answer
Revenues
Full service revenue 100,000$
Painting prep revenue 15,000
Total revenues 115,000
Expenses
Salaries expense 40,000$
Painting supplies revenue 18,000
Rent and utilities expense 15,000
Advertising expense 3,500
Office supplies expense 1,000
Total expenses 77,500
Net income 37,500$
College Painters
Retained earnings statement
Year ending December 31, 2008
Retained earnings, beginning of year 15,000$
Net income 37,500
Retained earnings, end of year 52,500