Question

Use the following accounts and information to prepare, in good form, an income statement, statement of retained earnings, and balance sheet for Brushton Industries for the month ended July 31, 20xx. Accounts Payable $6,200 Land $70,000 Accounts Receivable 2,800 Notes Payable 6,600 Buildings 44,000 Rent Expense 4,800 Cash 31,200 Retained Earnings, Commissions Earned 25,400 July 1, 2016 115,800 Common Stock 40,000 Salaries Expense 20,000 Dividends 16,000 Supplies 800 Insurance Expense 4,400

Answer 1

  Brushton industries

Income Statement

For the month Ended july 31

Commissions Revenue = 25400

Expenses:

Insurance Expense = 4400  

Rent Expense = 4800

Salaries Expense = 20000

Total Expenses: = 29200

Net loss = 3800

Statement of Retained Earnings

Retained Earnings, Beginning = 115800

less net loss = 3800

Less: Dividends = 16000

Retained Earnings, Ending = 96000

Balance Sheet

Assets

Current Assets

Cash = 31200

Accounts Recievable = 2800

Supplies = 800

Total Current Assets = 34800

Noncurrent Assets

Land = 70000

Buildings = 44000

Total Noncurrent Assets = 114000

total assets = 148800

Liabilities

Current Liabilities

Accounts Payable = 6200

Noncurrent Liabilities

Notes Payable = 6600

Total Liabilities = 12800

Shareholders' Equity

Common Stock = 40000

Retained Earnings = 96000

Total Shareholders' Equity = 136000

total liablities + share holder equity = 148800