Use the following Adjusted Trial Balance and Income Statement, to prepare the
Income Statement, Statement of Retained Earnings
and Balance Sheet as of 12/31/2021
	Account Description
	Cash				$74,000
	Accounts Receivable				32,500
	Office Supplies				500
	Prepaid Insurance				3,500
	Store Equipment				185,000
	Accumulated Depreciation,Store Equipment				48,000
	Accounts Payable				22,000
	Salaries Payable				5,500
	Long-term Notes Payable				6,000
	Common Stock				64,000
	Retained Earnings, Beginning				50,000
	Dividends				4,500
	Service Revenue				225,000
	Depreciation Expense - Store Equipment				15,000
	Salary Expense				65,000
	Rent Expense - Office Space				24,000
	Advertising Expense				10,000
	Utilities Expense - Office Space				5,000
	Interest Expense				300
	Maintenance & Repairs Expense				1,200

1. The proper order of financial statement completion is:

Income Statement, Statement of Retained Earnings, Balance Sheet

Statement of Retained Earnings, Income Statement, Balance Sheet

Balance Sheet, Statement of Retained Earnings, Income Statement

Any order is acceptable

2. Which of the following is NOT an acceptable date format for the Income Statement?

As of Dec 31, 2021

For the year ended Dec 31, 2021

Jan 1 through Dec 31, 2021

For the twelve months ended Dec 31, 2021

3. Total expenses totaled:

$120,500

$105,500

$225,000

$119,000

4. Which expense is listed first?

Salary Expense

Advertising Expense

Interest Expense

5. The ending Retained Earnings balance is:

$150,000

$100,000

$154,500

$104,500

6. Total assets totaled

$247,500

$295,500

$110,000

$243,500

7. Liabilities included in this balance sheet are:

Accounts Payable, Salaries Payable, Long-term Notes Payable

Accounts & Salaries Payable

Common Stock & Retained Earnings

Long-term Notes Payable & Common Stock

8. The ending equity balance as of Dec 31, 2021 was:

$214,000

$64,000

$150,000

$114,000

9. The primary purpose of the Financial Statements is to determine a company's financial performance and health; therefore the presentation of those financial statements is not important

True

False

10. When completing a financial statement, the final answer/number is denoted/symbolized with:

Double underline

Bold type

Italics type

Single underline