Cornhusker Company provides the following information at the end of 2018. Cash r
ID: 2608904 • Letter: C
Question
Cornhusker Company provides the following information at the end of 2018. Cash remaining Rent expense for the year Land that has been purchased Retained earnings Utility expense for the year Accounts receivable from customers Service revenue earned during the year Salary expense for the year Accounts payable to suppliers Dividends paid to shareholders during the year Common stock that has been issued prior to 2018 Salaries owed at the end of the year Insurance expense for the year 2,900 5,100 21,000 10,500 3,000 5,300 27,500 11,400 1,250 1,300 6,000 1,450 1,600 No common stock is issued during 2018, and the balance of retained earnings at the beginning of 2018 equals $5,400. Required 1. Prepare the income statement for Cornhusker Company on December 31, 2018. CORNHUSKER COMPANY ncome Statement For the year ended Decem 31, 2018 Expenses: Total expensesExplanation / Answer
Answer
Income Statement
Service Revenue
27,500
Expenses
Rent Expense
5,100
Utilities Expense
3,000
Salary Expense
11,400
Insurance Expense
1,600
Total Expenses
21,100
Net Operating Income
6,400
Balance Sheet
Assets
Liabilities
Cash
2,900
Liabilities
Land
21,000
Accounts Payable
1,250
Accounts Receivable
5,300
Outstanding Salaries
1,450
Total Liabilities
2,700
Stockholder's Equity
Common Stock
16,000
Retained Earnings
10,500
Total Stockholder's Equity
26,500
Total Assets
29,200
Total Stockholder's Equity and Liabilities
29,200
Statement of Stockholder's Equity
Common Stock
Retained Earnings
Total Stockholder's Equity
Beginning Balance
16,000
5,400
21,400
Add: Net Income
6,400
6,400
Less: Dividend
(1,300)
(1,300)
Ending Balance
16,000
10,500
26,500
Income Statement
Service Revenue
27,500
Expenses
Rent Expense
5,100
Utilities Expense
3,000
Salary Expense
11,400
Insurance Expense
1,600
Total Expenses
21,100
Net Operating Income
6,400