Question
Here are the assets, liabilities, and common stock of the Newcastle Company at December 31, 2021, and the revenues and expenses for the month of
Here are the assets, liabilities, and common stock of the Newcastle Company at December 31, 2021, and the revenues and expenses for the month of December, its first month of operations:
Prepare an income statement, retained earnings statement, and balance sheet using the amounts listed below.
Cash | $ 4,600 | Notes payable | $12,000 | |||
Accounts receivable | 4,000 | Accounts payable | 500 | |||
Sales revenue | 8,500 | Supplies expense | 1,000 | |||
Cost of goods sold | 3,100 | Inventory | 1,600 | |||
Supplies | 2,400 | Maintenance and repairs expense | 600 | |||
Advertising expense | 400 | Utilities expense | 300 | |||
Equipment | 26,000 | Salaries and wages expense | 1,400 | |||
Common stock | 24,800 |
During June, the company paid dividends of $400.
Requirement 1: In simple form, prepare the Income Statement for the year ended December 31, 2021.
Newcastle Company Income Statement For the month ended December 31, 2021
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Requirement 2: Prepare the Retained Earnings Statement for the year ended December 31, 2021.
Newcastle Company Retained Earnings Statement For the month ended December 31, 2021
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Requirement 3: In simple form, prepare the Balance Sheet as of December 31, 2021.
Newcastle Company Balance Sheet December 31, 2021
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started