Additional investment 20,000
Ending balance (a–b) + add. invest. $49,900
a Acc. rec. + Build. + Beg. Cash + Equip. + Land + Supp.
b Acc. pay. + Note pay. + Ret. earn.
Ex. 210
This information relates to Connor Co. for the year 2022:
Retained earnings, January 1, 2022 $59,000
Advertising expense 1,800
Dividends paid during 2022 9,000
Rent expense 10,400
Service revenue 52,000
Utilities expense 2,400
Salaries and wages expense 25,000
Instructions
After analyzing the data, prepare an income statement and a retained earnings statement for the year ending December 31, 2022.
Ans: N/A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 10, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution 210
CONNOR CO.
Income Statement
For the Year Ended December 31, 2022
______________________________________________________
Revenues
Service revenue ............................................................................ $52,000
Expenses
Salaries and wages expense $25,000
Rent expense 10,400
Utilities expense 2,400
Advertising expense 1,800
Total expenses ........................................................................................ 39,600
Net income ............................................................................ $12,400