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e Microsoft Edge Start Chapter 3 HW x Studen ezto.mheducation.com/hm.tpx The following accounts are taken from Equilibrium Riding, Inc., a company that specializes in occupational therapy and horseback riding lessons, as of December 31 EQUILIBRIUM RIDING, INC Unadjusted Trial Balance At December 31 Account Name Debits Credits S 63,300 6,650 5,500 67,950 23,100 Cash Accounts Receivable Prepaid Insurance Equipment Land Accounts Payable Unearned Revenue Notes Payable (long-term) Common stock Retained Earnings Dividends Service Revenue 33,750 2,550 73,000 5,000 32,815 26,500 Wages Expense Repairs and Maintenance Expense 6,400 415 300 Office Expenses Totals $173,615 $173,615 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 ware 20
Expert Answer
| EQUILIBRIUM RIDING, INC. | ||
| Income Statement | ||
| For the Year Ended December 31 | ||
| Revenues: | ||
| Service Revenue | $ 26,500 | |
| Expenses: | ||
| Wages Expense | $ 6,400 | |
| Repairs and Maintenance Expense | 415 | |
| Office Expenses | 300 | |
| Total Expenses | $ 7,115 | |
| Net Income | $ 19,385 | |
| EQUILIBRIUM RIDING, INC. | |
| Statement of retained earnings | |
| Retained Earnings, Jan. 1 | $ 32,815 |
| Add: Net Income | 19,385 |
| Subtract: Dividends | 0 |
| Retained Earnings, Dec. 31 | $ 52,200 |
| EQUILIBRIUM RIDING, INC. | |
| Balance Sheet | |
| For the Year Ended December 31 | |
| Assets | |
| Current Assets | |
| Cash | $ 63,300 |
| Accounts Receivable | 6,650 |
| Prepaid Insurance | 5,500 |
| Total Current Assets | $ 75,450 |
| Equipment | 67,950 |
| Land | 23,100 |
| Total Assets | 166,500 |
| Liabilities and stockholders’ Equity | |
| Liabilities | |
| Current Liabilities | |
| Accounts Payable | 33750 |
| Unearned Revenue | 2,550 |
| Total Currrent Liabilities | 36300 |
| Long-Term Notes payable | 73,000 |
| Total Liabilities | 109,300 |
| Stockholders’ Equity | |
| Common Stock | 5,000 |
| Retained earnings | $ 52,200 |
| Total Stockholders’ Equity | 57,200 |
| Total Liabilities and stockholders’ Equity | 166,500 |
