Comprehensive Problem 1 Part 8:

The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.

NOTE: You must complete parts 1, 2, 3, 4, 6 and 7 before completing part 8. Part 5 is optional.

Prepare an income statement.

Fees earnedInsurance expenseRent expenseSalary expenseUtilities expense $fill in the blank 2Expenses: CashFees earnedSalary expenseSalaries payableUtilities expense$fill in the blank 4 CashOffice equipmentPrepaid rentRent expenseUtilities expensefill in the blank 6 Accounts receivableFees earnedSuppliesSupplies expenseUtilities expensefill in the blank 8 Accounts payableAccumulated depreciationDepreciation expenseUtilities expenseUnearned feesfill in the blank 10 CashFees earnedInsurance expensePrepaid insuranceUtilities expensefill in the blank 12 Accounts payableAccounts receivableIncome summaryMiscellaneous expenseUtilities expensefill in the blank 14 Common stockFees earnedRetained earningsTotal expensesUtilities expense fill in the blank 16Kelly Pitney, drawingIncome summaryNet incomeNet lossUtilities expense $fill in the blank 18

Prepare a statement of stockholders equity. If an amount box does not require an entry, leave it blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.

Common StockRetained EarningsTotalBalances, May 1, 20Y8Balances, May 31, 20Y8DividendsNet incomeNet loss$fill in the blank 20$fill in the blank 21$fill in the blank 22Balances, May 1, 20Y8Balances, May 31, 20Y8Change in retained earningsNet incomeNet lossfill in the blank 24fill in the blank 25fill in the blank 26Balances, May 1, 20Y8Balances, May 31, 20Y8DividendsNet incomeNet lossfill in the blank 28fill in the blank 29fill in the blank 30Balances, May 1, 20Y8Balances, May 31, 20Y8DividendsNet incomeNet loss$fill in the blank 32$fill in the blank 33$fill in the blank 34

Prepare a balance sheet.

AssetsLiabilitiesCurrent assets: Current liabilities: CashFees earnedOffice equipmentKelly Pitney, capitalUnearned fees$fill in the blank 36 Accounts payableAccounts receivableCashCommon stockRetained earnings$fill in the blank 38 Accounts payableAccounts receivableFees earnedSalaries payableUnearned feesfill in the blank 40 Accounts receivablePrepaid insurancePrepaid rentSalaries payableSalary expensefill in the blank 42 Accounts payableFees earnedSuppliesSupplies expenseUnearned feesfill in the blank 44 Accounts receivableCommon stockFees earnedRetained earningsUnearned feesfill in the blank 46 Accounts payableMiscellaneous expenseOffice equipmentPrepaid rentRent expensefill in the blank 48 CashInsurance expensePrepaid insuranceSalaries payableSupplies expensefill in the blank 50 Total liabilities $fill in the blank 51Total current assets $fill in the blank 52 Property, plant, and equipment: Stockholders Equity Accounts payableFees earnedOffice equipmentPrepaid insuranceRent expense$fill in the blank 54 Accounts payableCommon stockOffice equipmentPrepaid insuranceRent expense$fill in the blank 56 Accounts payableAccumulated depreciationDepreciation expenseOffice equipment Unearned feesfill in the blank 58 Accounts receivableFees earnedOffice equipmentRetained earningsSalaries payablefill in the blank 60 Total property, plant, and equipment fill in the blank 61Total stockholders equity fill in the blank 62Total assets $fill in the blank 63Total liabilities and stockholders equity $fill in the blank 64