Question

Financial statements from the end-of-period spreadsheet

Demo Consulting is a consulting firm owned and operated by Jesse Flatt. The following end-of-period spreadsheet was prepared for the year ended August 31, 20Y9:

During the year ended August 31, 20Y9, $15,000 of additional common stock was issued.

	Demo Consulting
	End-of-Period Spreadsheet
	For the Year Ended August 31, 20Y9
	Unadjusted						Adjusted
	Trial Balance		Adjustments				Trial Balance
Account Title	Dr.	Cr.		Dr.		Cr.	Dr.	Cr.
Cash	182,500						182,500
Accounts Receivable	234,500						234,500
Supplies	27,600					22,600	5,000
Land	775,000						775,000
Office Equipment	400,000						400,000
Accumulated Depreciation		60,200				11,800		72,000
Accounts Payable		41,500						41,500
Salaries Payable						13,500		13,500
Common Stock		100,000						100,000
Retained Earnings		810,000						810,000
Dividends	30,000						30,000
Fees Earned		1,480,000						1,480,000
Salary Expense	829,600			13,500			843,100
Supplies Expense				22,600			22,600
Depreciation Expense				11,800			11,800
Miscellaneous Expense	12,500						12,500
	2,491,700	2,491,700		47,900		47,900	2,517,000	2,517,000

Based on the preceding spreadsheet, prepare an income statement for Demo Consulting.

Demo Consulting
Income Statement
For the Year Ended August 31, 20Y9
Accounts receivable		$
Expenses:
	$
Total expenses
		$

Feedback

Revenue and expense accounts flow into the income statement.

Based on the preceding spreadsheet, prepare a statement of stockholders’ equity for Demo Consulting. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. If an amount box does not require an entry, leave it blank.

Demo Consulting
Statement of Stockholders’ Equity
For the Year Ended August 31, 20Y9
	Common Stock	Retained Earnings	Total
	$	$	$
	$	$	$

Feedback

The statement of stockholders' equity shows the beginning balances of common stock and retained earnings. The common stock balance will be increased by any stock issued during the period, and retained earnings will be increased by any net income and decreased by any net losses and dividends.

Based on the preceding spreadsheet, prepare a balance sheet for Demo Consulting.

Demo Consulting
Balance Sheet
August 31, 20Y9
Assets
Current assets:
		$
Total current assets			$
Property, plant, and equipment:
		$
	$
Total property, plant, and equipment
Total assets			$
Liabilities
Current liabilities:
		$
Total liabilities			$
Stockholders' Equity
		$
Total stockholders' equity
Total liabilities and stockholders' equity			$

Answer 1

Demo Consulting
Income Statement
For the Year Ended August 31, 20Y9
Fees earned		1480000
Expenses:
Salary expense	843100
Supplies expense	22600
Depreciation expense	11800
Miscellaneous expense	12500
Total expenses		890000
Net income		590000

Demo Consulting
Statement of Stockholders' Equity
For the Year Ended August 31, 20Y9
	Common Stock	Retained Earnings	Total
Balance, September 1, 20Y8	85000	810000	895000
Issued common stock	15000		15000
Net income		590000	590000
Dividends		-30000	-30000
Balance, August 31, 20Y9	100000	1370000	1470000

Demo Consulting
Balance Sheet
August 31, 20Y9
Assets
Current assets:
Cash		182500
Accounts receivable		234500
Supplies		5000
Total current assets			422000
Property, plant, and equipment
Land		775000
Office equipment	400000
Accumulated depreciation	72000
Book value-office equipment		328000
Total property, plant, and equipment			1103000
Total assets			1525000
Liabilities
Current liabilities:
Accounts payable		41500
Salaries payable		13500
Total liabilities			55000
Stockholders' Equity
Common stock		100000
Retained earnings		1370000
Total stockholders' equity			1470000
Total liabilities and stockholders' equity			1525000