Please fill in the spaces of the financial statement accordingly to the template provided.

M2 SERVICE COMPANY FINANCIAL STATEMENTS Note: For a problem using the sole proprietorship form of business organization, download PFS from the website for this book found at cengagebrain.com. The ledger of Skitch Corp. showed the following balances after adjustment on June 30, 2012, the end of the current fiscal year: Accounts payable Accounts receivable Accumulated depreciation ---equipment $ 55,600 General expenses 103,890 Interest expense 26,250 $112,350 6,750 46,335 10,125 0 Cash Common stock Salaries expense Dividends Equipment Notes payable 80,370 Prepaid insurance 300,000 Retained earnings, July 1, 621,450 2011 18,000 Sales 280,000 Advertising expense 943,500 138,750 The president of Skitch has asked you to develop a financial statement worksheet (file name FFS) that includes a single-step income statement, a statement of retained earnings, and a balance sheet. This worksheet will allow the financial statements to be prepared quickly by entering account balances in the appropriate cells on the worksheet. Use the information provided as input for your worksheet. Review the Model-Building Problem Checklist on page 154 to ensure that your worksheet is complete. Print the worksheet when done. Check figure: Total assets, $448, 135. To test your model, use the following data for the year ended June 30, 2013: $ 108,150 9,000 Accounts payable Accounts receivable Accumulated depreciation-equipment Cash Common stock Salaries expense Dividends Equipment $ 67,050 General expenses 92,700 Interest expense 52,500 Notes payable 72,400 Prepaid insurance 300,000 Retained earnings, July 1, 659,835 2012 0 Sales 320,000 Advertising expense 44,085 10,800 46,200 892,500 129,450 Print the worksheet when done. Check figure: Total assets, $443,400. CHART (optional) Utilizing the test data worksheet, prepare a pie chart depicting the percentage of each expense to total expenses. Print the chart when done. 156 FFS Service Company Financial Statements Skitch Corp. Income Statement For Year Ended June 30, 20XX Revenue Sales Expenses Cost of merchandise sold Selling expenses General expenses Interest expense Total expenses Net income I 1 1 1 1 1 1 1 Skitch Corp. Statement of Retained Earnings For Year Ended June 30, 20XX + 1 1 1 dage 1 Page 2 Retained earings, beginning Net income for the year Less dividends Net change in retained earnings Retained earnings, ending 4 Skitch Corp. Balance Sheet As of June 30, 20XX 1 1 I 1 1 1 1 1 Assets Current Assets Cash Accounts receivable Merchandise inventory Prepaid insurance Total current assets Plant Assets Equipment Less accumulated depreciation Total plant assets Total assets 1 Liabilities 1 Accounts payable Notes payat Total liabilities 11 1 1 1 Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and equity Page 2 Page 4 + 1 Chart Data Table C CGS Selling Interest General