Income Statement and Balance Sheet

The records of R. Levy, Interior Decorator, show the following information for the year-end December 31, 2016:

Notes Payable	$16,000		Supplies	$24,400
Decorating Fees Earned	270,400		Cash	16,800
Insurance Expense	6,000		Accounts Receivable	42,400
Supplies Expense	38,800		Advertising Expense	6,800
Miscellaneous Expense	800		Salaries Expense	120,000
Common Stock	46,400		Rent Expense	30,000
Retained Earnings	?		Accounts Payable	7,200

Required

a. Prepare an income statement for the year.

R. LEVY, INTERIOR DECORATOR Income Statement For Year Ended December 31, 2016
AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDecorating Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense
AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDecorating Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense		$Answer
Expenses
Supplies Expense	$Answer
Insurance Expense	Answer
Advertising Expense	Answer
Salaries Expense	Answer
AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDecorating Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense	Answer
Miscellaneous Expense	Answer
Total Expenses		Answer
AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDecorating Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense		$Answer

b. Prepare a balance sheet as of December 31, 2016.

R. LEVY, INTERIOR DECORATOR Balance Sheet December 31, 2016
	ASSETS			LIABILITIES
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDecorating Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense	$Answer		AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDecorating Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense	$Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDecorating Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense	Answer		Notes payable	Answer
	Supplies	Answer		Total Liabilities		$Answer
				STOCKHOLDERS' EQUITY
				AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDecorating Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense	Answer
				AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDecorating Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense	Answer
				Total Stockholders' Equity		Answer
	Total Assets	$Answer		Total Liabilities and Stockholders' Equity		$Answer