The records of Roadmaster Auto Rentals show the following information as of December 31. The sole stockholder, Rob Fletcher received dividends of $52,000 during the year. Prepare a December income statement, a December statement of retained earnings, and a December 31 balance sheet.Accounts payable $36,000?Wages expense $75,000Insurance expense 2,000?Advertising expense 22,000Accounts receivable 24,000?Cash 11,000Common stock60,000?Office Furniture 15,000Airplanes 150,000?Maintenance expense 39,000Notes payable 47,000?Revenues 217,000Hangar 60,000?Retained earnings, January 190,000
What will be an ideal response?
| ? | ROADMASTER AUTO RENTALS Income Statement For Year Ended December 31 | ||
| ? | Revenues | ? | $ 217,000 |
| ? | Expenses: | ? | ? |
| ? | Insurance expense | $ 2,000 | ? |
| ? | Wages expense | 75,000 | ? |
| ? | Advertising expense | 22,000 | ? |
| ? | Maintenance expense | 39,000 | ? |
| ? | Total expenses | ? | $ 138,000 |
| ? | Net income | ? | $ 79,000 |
| ? | ? | ? | ? |
| ROADMASTER AUTO RENTALS Statement of Retained Earnings For Year Ended December 31 | |||
| ? | Retained earnings, January 1 | $90,000 | ? |
| ? | Add: Net income | 79,000 | ? |
| ? | Less: Dividends | (52,000 | ) |
| ? | Retained earnings, December 31 | $117,000 | ? |
| ? | ? | ? | ? |
| ? | ROADMASTER AUTO RENTALS Balance Sheet December 31 | ||||
| ? | Assets | ? | ? | Liabilities | ? |
| ? | Cash | $ 11,000 | ? | Accounts payable | $ 36,000 |
| ? | Accounts receivable | 24,000 | ? | Notes payable | 47,000 |
| ? | Airplanes | 150,000 | ? | Total liabilities | $ 83,000 |
| ? | Hangar | 60,000 | ? | Equity | ? |
| ? | Office furniture | 15,000 | ? | Common stock | 60,000 |
| ? | ? | _______ | ? | Retained earnings | 117,000 |
| ? | Total assets | $260,000 | ? | Total liabilities and equity | $260,000 |
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