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Chrome File Edit View History Bookmarks People Window Help Chapter 3 Hw McGraw-Hill Connect | E x 、D Previous Attempt View eztomheducation.com/hm.tpx?-=0.201 6784996986586-1 505 1881 55540 : Apps Bookmarks EQUILIBRIUM RIDING, INC Unadjusted Trial Balance At December 31 Account Name Debits Credits Cash Accounts Receivable Prepaid Insurance Equipment Land Accounts Payable Unearned Revenue Notes Payable (long-term) $ 74,400 7,100 8,050 74,100 31,950 33,250 1,550 67,000 5,000 68,355 Common stock Retained Eamings Dividends Service Revenue Wages Expense Repairs and Maintenance Expense Office Expenses 27,000 5,350 440 765 Totals $202,155 $202,155 Required: 1·Using the unadjusted trial balance provided create an income statement for Equilibrium Riding, Inc., for the year ended December 31 EQUILIBRIUM RIDING, INC. Income Statement For the Year Ended December 31 Revenues
Expert Answer
| income statement | |||||||
| Revenues | |||||||
| Service revenue | 27,000 | ||||||
| total revenue | 27,000 | ||||||
| less :expenses | |||||||
| Wage expense | 5,350 | ||||||
| Repairs & maintenance expense | 440 | ||||||
| office expenses | 765 | ||||||
| total expense | 6,555 | 6,555 | |||||
| Net income | 20,445 | ||||||
| Statement of retained earnings | |||||||
| Retained earnings ,Jan1 | 68,355 | ||||||
| Add net income | 20,445 | ||||||
| less Dividends | 0 | ||||||
| retained earnings , dec 31 | 88,800 | ||||||
| Balance sheet | |||||||
| Assets | |||||||
| Current assets | |||||||
| cash | 74,400 | ||||||
| Accounts receivable | 7,100 | ||||||
| prepaid insurance | 8,050 | ||||||
| total current assets | 89,550 | ||||||
| Equipment | 74,100 | ||||||
| land | 31,950 | ||||||
| total Assets | 195,600 | ||||||
| liabilities & Stockholder’s Equity | |||||||
| liabilities. | |||||||
| Current liabilities | |||||||
| Accounts payable | 33,250 | ||||||
| unearned revenue | 1,550 | ||||||
| total current liabilities | 34,800 | ||||||
| long term notes payable | 67,000 | ||||||
| total liabilities | 101,800 | ||||||
| Stockholder’s Equity | |||||||
| contributed capital | 5,000 | ||||||
| Retained Earnings | 88,800 | ||||||
| total Stockholder’s Equity | 93,800 | ||||||
| total liabilities & stockholders Equity | 195,600 | ||||||
