Q42PGA_3
Question
Presented here are the accounts of Hometown Décor Company for the year ended December 31, 2018. Land \( 13,000 Common Stock \) 28,000 Notes Payable 33,000 Accounts Payable 14,000 Property Tax Expense 2,800 Accounts Receivable 800 Dividends 36,000 Advertising Expense 17,000 Rent Expense 14,000 Building 170,400 Salaries Expense 67,000 Cash 2,800 Salaries Payable 1,300 Equipment 17,000 Service Revenue 225,000 Insurance Expense 1,700 Office Supplies 8,000 Interest Expense 6,800 Retained Earnings, Dec. 31, 2017 56,000 Requirements 1. Prepare Hometown Décor Company’s income statement. 2. Prepare the statement of retained earnings. 3. Prepare the balance sheet
Step-by-Step Solution
VerifiedHometown Décor Company | ||||
Balance Sheet | ||||
December 31, 2018 | ||||
| Assets | Liabilities | |||
Cash | $2,800 | Salaries Payable | $1,300 | |
Building | 170,400 | Accounts Payable | 14,000 | |
Office Supplies | 8,000 | Notes Payable | 33,000 | |
Accounts Receivable | 800 | Total Liabilities | 48,300 | |
Equipment | 17,000 | Stockholders’ Equity | ||
Land | 13,000 | Common Stock | 28,000 | |
|
| Retained Earnings | 135,700 | |
|
| Total Stockholders’ Equity | 163,700 | |
Total Assets | $212,000 | Total Liabilities and Stockholders’ Equity | $212,000 | |
Balance sheet reports the balances of assets, liabilities, and stockholders’ equity for the particular accounting period.
In the balance sheet, total assets equals $212,000, total liabilities equals $48,300, and total stockholders’ equity equals $163,700.