Following is a list of financial statement items and amounts for Vantage Service as of 12/31/Year 1, the end of its first year in operation. Accounts Receivable$40,000 Accounts Payable 30,000 Cash 10,000 Common Stock 20,000 Notes Payable 20,000 Equipment 50,000 Sales Revenue 100,000 Fuel Expense 15,000 Rent Expense 20,000 Advertising Expense 5,000 Salaries and Wages Expense 20,000 Retained Earnings ? Dividends 10,000 Required:Prepare the Income Statement for the year ended December 31, Year 1. Prepare the statement of retained earnings for the year ended December 31, Year 1. Prepare the balance sheet for the year ended December 31, Year 1.
What will be an ideal response?
| Vantage Service Income Statement For the Year Ended December 31, Year 1 | |
| ? | ? |
| Revenues | ? |
| Sales Revenue | $100,000 |
| ? | ? |
| Expenses | ? |
| Fuel Expense | 15,000 |
| Rent Expense | 20,000 |
| Advertising Expense | 5,000 |
| Wage Expense | 20,000 |
| Total Expenses | 60,000 |
| Net Income | $ 40,000 |
| ? | ? |
| Vantage Service Statement of Retained Earnings For the Year Ended December 31, Year 1 | ||
| ? | ? | ? |
| Retained Earnings, January 1, Year 1 | $ 0 | ? |
| Add: Net Income | 40,000 | ? |
| Subtract: Dividends | (10,000 | ) |
| Retained Earnings, December 31, Year 1 | $30,000 | ? |
| ? | ? | ? |
| Vantage Service BALANCE SHEET December 31, Year 1 ? | |
| Assets | ? |
| Cash | $ 10,000 |
| Accounts Receivable | 40,000 |
| Equipment | 50,000 |
| Total Assets | $100,000 |
| ? | ? |
| Liabilities | ? |
| Accounts Payable | $ 30,000 |
| Notes Payable | 20,000 |
| Total Liabilities | 50,000 |
| Stockholders' Equity | ? |
| Common Stock | 20,000 |
| Retained Earnings | 30,000 |
| Total Equity | 50,000 |
| Total Liabilities and Stockholders' Equity | $100,000 |
| ? | ? |
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