Enter formulas in cells that contain question marks (only use formulas). After entering formulas in all of the cells that contain question marks, verify that the amounts match the example below. (a) Income Statement Revenues: Service revenue $90,000 Interest revenue 5,000 $95,000 Expenses: Advertising 10,000 Expense Insurance expense 16,000 Salaries expense 45,000 Rent expense 6,000 77.000 Net income $18,000 (b) Balance Sheet Assets: Cash Accounts receivable Supplies Land $ 8,000 20,000 Liabilities: $22,000 salaries payable 20,000 Notes payable 11,000 45,000 Equities: Common stock Retained earnings $98,000 Total 40,000 30,000 $98,000 Total Assets equal Liabilities + Equities Check your worksheet setup and formulas by changing Advertising Expense to $12,000, Rent Expense to $8,000, and Retained Earnings to $20,000 You should now have an out of balance condition of $1,000 (Total Assets of $98,000 and Total Liabilites plus Stockholders' Equity of $97,000), with the validation message does not equal Check your worksheet setup and formulas by changing Advertising Expense to $12,000, Rent Expense to $8,000, and Retained Earnings to $20,000 You should now have an out of balance condition of $1,000 (Total Assets of $98,000 and Total Liabilites plus Stockholders' Equity of $97,000). with the validation message does not equal. If you do not get this answer, review your worksheet and the formulas you used. K M N P D View the tutorial, then complete the worksheet, replacing the question marks below with formulas 1 2 3 4 5 6 7 8 Part 1: Assume a company has the following account balances at year and for Retained earnings which is the beginning balance). Create an income statement and balance sheet, replacing the guestion marks wil Give information Assets Expenses: Advertising Insurance expense Salaries expense Rent expense 510.000 16.000 45.000 6.000 Cash Accounts receivable Supplies Land $22.000 20.000 11.000 45.000 10 11 12 13 14 15 16 Liabilities: Salaries payable Notes payable 8.000 20.000 Revenues Service revenue Interest revenue 90.000 5.000 Dividends: Dividends 5.000 Equity Common stock Retained earnings 40.000 17.000 18 19 come itement Revenues (b) Balance Sheet Assets Liabilities 21 - BIVA D F G H 1 N O P O POUR Dividends: Dividends 5.000 Equity 40.000 Common stock Retained earning 17.000 15 16 17 18 19 20 21 Income statement Revenues Balance Sheet Assets: Liabilities: 23 24 Total Revenue Expenses Equities 25 7 27 Total Total 20 Awets Liabetes. Equities 30 31 Total Expenses Net Income U conditional terme Bance sheet is in balance or hate Student Work Revise the data in your spreadsheet based on the following assumptions, and then answer the questions that follow: Assets: $13,600 19,600 48,600 9,600 Cash Accounts receivable Supplies Land $25,600 23,600 14,600 54,000 Expenses : Advertising Expense Insurance expense Salaries expense Rent expense Liabilities: Salaries payable Notes payable Dividends: Dividends 11,600 34,400 93,600 8,600 Revenues: Service revenue Interest revenue Equity: Common stock Retained earnings 8,600 43,600 26,000 Required: 1. What is the Net Income/(Loss)? O $26,000 O $10,800 O $13,600 O $20.900 Assume the company has an increase in its Salaries Expense of 20% and a decrease in Service Revenue of 15%. Both of which will be settled after the year end. Adjust and recalculate the balances in the Income Statement and Balance Sheet. All sales are on account. 2. What is the revised balance of the Service Revenue account? $6,040 O $79,560 O $14,040 O $32,040 3. What is the revised Net Income (Loss)? O $11,560 $(12,960) $17,560 O $4,560 4. What is the revised balance in the Retained Earnings account? O $5,100 O $10,100 O $4,440 O $18,100
