Following is a list of financial statement items and amounts for Tim Burr’s Tree

Question

Following is a list of financial statement items and amounts for Tim Burr’s Tree Service as of 12/31/X3, the end of its first year in operation

1. Prepare the Income Statement for the year ended December 31, 20X3

2. Prepare the statement of retained earnings for the year ended December 31, 20X3

3. Prepare the balance sheet for the year ended December 31, 20X3.

Accounts Receivable $ 41,400   Accounts Payable 31,400   Cash 10,140   Common Stock 21,400   Notes Payable   10,280   Equipment 50,700   Service Revenue 107,000   Fuel Expense 10,140   Rent Expense 11,300   Advertising Expense 5,140   Salaries and Wages Expense 21,400   Retained Earnings ?   Dividends 19,860

1. Prepare the Income Statement for the year ended December 31, 20X3

2. Prepare the statement of retained earnings for the year ended December 31, 20X3

3. Prepare the balance sheet for the year ended December 31, 20X3.

Explanation / Answer

INCOME STATEMENT Column1 Column2 Column3 Expenditure Amount Income Amount Fuel Expense          10,140.00 Service Revenue           107,000.00 Rent Expense          11,300.00 Advertising Expense            5,140.00 Salaries & Wage Expense          21,400.00 Net Income          59,020.00       107,000.00           107,000.00 STATEMENT OF RETAINED EARNINGS Particulars Amount Opening Balance                         -   Add: Net Income for the year          59,020.00 Less: Dividends Paid          19,860.00 Closing balance          39,160.00 BALANCE SHEET Liabilities Amount Assets Amount Common Stock          21,400.00 Equipment             50,700.00 Retained Earnings          39,160.00 Accounts Receivable             41,400.00 Accounts Payable          31,400.00 Cash             10,140.00 Notes payable          10,280.00       102,240.00           102,240.00

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