Prepare financial statements . (LO 1, 3), AP These items are taken from the fina
ID: 2445659 • Letter: P
Question
Prepare financial statements.
(LO 1, 3), AP
These items are taken from the financial statements of Mueller, Inc.
Instructions
Prepare an income statement, a retained earnings statement, and a classified balance sheet as of December 31, 2014.
Prepaid insurance $ 2,400 Equipment 30,000 Salaries and wages expense 34,000 Utilities expense 2,100 Accumulated depreciation—equipment 7,600 Accounts payable 7,200 Cash 6,100 Accounts receivable 2,900 Salaries and wages payable 3,000 Common stock 6,000 Depreciation expense 4,300 Retained earnings (beginning) 14,000 Dividends 2,600 Service revenue 51,000 Maintenance and repairs expense 2,600 Insurance expense 1,800Explanation / Answer
Income statement for the year ended 31,December 2014
Service Revenue $51000
Salaries and wages expense $34000
Depreciation expense $ 4300
Maintenance and repairs expense $ 2600
Insurance expense $ 1800
Utilities $2100
--------------- $ 44800
Net Income $ 6200
less : dividend $ 2600
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Earnings for the year transferred to Retained earnings $ 3600
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Retained Earnings statement
Retained earnings in the beginning $14000
Add :- transferred from income statement $ 3600
Retained earnings at close of the year $17600
Balance sheet as at December 31, 2014
Liabilities $ $ Assets $ $
Common stock 6000 Fixed Assets
Retained Earnings 17600 Equipment 30000
Current Liabilities less accumulated depreciation 7600
Accounts payable 7200 ------------- 22400
Salaries and wages payable 3000 Current Assets
---------- 10200 Cash 6100
Prepaid Insurance 2400
Accounts receivable 2900
----------- 11400
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TOTAL 33800 33800
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