Prepare Statement of Earnings for year ended December 31, 2019

On October 31st, 2019, the company declared $30,000 cash dividends. The dividends were paid on February 12, 2020.

On February 15th, 2019, the company declared a 20% common stock dividends when market share price was $30. The shares were distributed on November 15th, 2019 when market share price was $32.

On December 31, 2019, the company declared a two-for-one stock split on common shares.

Client/Customer List was purchased on December 31, 2019. It is expected to have an economic life of 3 years.

The furniture was purchased on Jan 1, 2017. It has a useful life of 10 years, with no expected residual value. Company uses the straight-line depreciation method. No depreciation was recorded for year 2019.

Jolly Party Inc. TRIAL BALANCE 31-Dec-19 Account name Debit Credit 16,000 50,000 14,000 12,000 14,000 5,000 4,000 187,000 15,000 20,000 10,000 Accounts Payable Accounts Receivable Accumulated Depreciation - Furniture Accumulated Other Comprehensive Income Advertising Expense Allowance for Doubtful accounts Bad debt expense Cash Client List Common Shares (unlimited number of shares authorized, 1,000 issued) Contributed Surplus Depreciation Expense-Furniture Furniture Goodwill Income tax expense Income tax payable Note Payable (instalments of $10,000/year) Preferred Shares (non-cumulative $2,100,000 of shares authorized, 2,000 issued) Prepaid Rent Rent Expense Retained Earnings, beginning of year Salary Expense Service Revenue Unearned Service Revenue 70,000 40,000 30,000 10,000 20,000 35,000 9,000 35,500 80,000 109,000 332,500 9,000 Totals 563500 563500