Question

Prepare the Income Statement,  the Retained Earning Statement , the Classified  Balance Sheet, and the Closing Entries using the adjusted trial balance for Stockton Company.

Stockton Company
Adjusted Trial Balance
For the Year ended December 31, 2018
Cash	$  6,030
Accounts Receivable	2,100
Prepaid Expenses	700
Land	10,000
Equipment	13,700
Accumulated Depreciation		$  1,100
Accounts Payable		1,900
Notes Payable,		4,200
Common Stock		10,000
Retained Earnings		12,150
Fees Earned		8,750
Wages Expense	2,500
Rent Expense	1,960
Utilities Expense	775
Depreciation Expense	250
Miscellaneous Expense	85
Totals	$38,100	$38,190

Answer 1

. 1. Profit & Loss A/c as on 31 Dec 2018

Dr.			Cr
Particulars	Amount	Particulars	Amount
Wages	2500	Fees Earned	8750
Rent Ep.	1960
Utilities Expenses	775
Dep. Expes	250
Miscellaneous Exp.	85
Net profit	3180
Total	8750		8750

2. Retain Earning Statement

Particular	Amount
Balance Retain Earning as on 31 Dec 2018	12150
Balance a/c	3180
Total Return Earning	15330

3. Balance Sheet

Liabilities	Amount	Assets	Amount
Share Capital	10000	Cash	6030
Return Earning	15330	A/c Receivable	2100
A/c Payable	1900	Prepaid Exps.	700
Note Payable	4200	Land	10000
		Equipment	13700
		Accumulated Dep	-1100
Total	31430	Total	31430