These items are taken from the financial statements of Mbong Corporation for the year ended December 31, 2012:

Additional information:
1. Mbong started the year with $30,000 of common shares and issued $4,200 more during the year.
2. $1,500 of the bank loan payable is due to be repaid within the next year.
Instructions
(a) Prepare an income statement, statement of changes in equity, and statement of financial position for the year.
(b) Explain how each financial statement is related to the others.

Transcribed Image Text:

Retained earnings, Jan. 1 Utilities expense 6,200 14,200 105,000 Depreciation expense Accounts receivable Insurance expense Salaries expense Accumulated depreciation-equipment Income tax expense Supplies Supplies expense Bank loan payable, due 2015 Short-term investments Accumulated depreciation-buildings18,000 Interest expense Interest revenue Accounts payable Buildings 37,000 17,600 6,000 Salaries payable Common shares Dividends Service revenue Prepaid insurance Repair and maintenance expense Land 3,000 5,000 81,700 1,000 15,000 20,000 1,500 40,000