Orange Designs provides consulting services related to home decoration. Orange Designs provides customers with recommendations for a full range of home décor, including window treatments, carpet and wood flooring, paint colors. furniture, and much more. Below is the year-end adjusted trial balance of Orange Designs. Accounts Cash Accounts Receivable Supplies Prepaid Rent Buildings Accumulated Depreciation Accounts Payable Salaries Payable Utilities Payable Notes (due in four years) Common Stock Retained Earnings Service Revenues. Salaries Expense Rent Expense Depreciation Expense Supplies Expense Advertising Expense Utilities Expense Interest Expense Totals ORANGE DESIGNS Adjusted Trial Balance December 31, 2024 Debits $ 6,000 5,000 3,000 7,000 120,000 43,000 19,000 8,000 9,000 14,000 13,000 3,000 $ 250,000 Credits $ 22,000 4,000 5,000 1,000 30,000 60,000 16,000 112,000 $ 250,000 Required: 1. Prepare an income statement for the year ended December 31, 2024. 2. Prepare the statement of stockholders' equity, note that during the year the company issued additional common stock of $11,000. This amount is included in the amount for Common Stock in the adjusted trial balance. 3. Prepare the classified balance sheet for the year ended December 31, 2024.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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**Orange Designs - Financial Overview and Adjusted Trial Balance**

Orange Designs provides consulting services related to home decoration, offering recommendations for a broad range of home décor solutions, including window treatments, carpet and wood flooring, paint colors, furniture, and more. Below is the year-end adjusted trial balance for Orange Designs.

---

**ORANGE DESIGNS**

*Adjusted Trial Balance*  
*December 31, 2024*

| **Accounts**                      | **Debits** | **Credits** |
|-----------------------------------|------------|-------------|
| Cash                              | $6,000     |             |
| Accounts Receivable               | $5,000     |             |
| Supplies                          | $3,000     |             |
| Prepaid Rent                      | $7,000     |             |
| Buildings                         | $120,000   |             |
| Accumulated Depreciation          |            | $22,000     |
| Accounts Payable                  |            | $5,000      |
| Salaries Payable                  |            | $5,000      |
| Utilities Payable                 |            | $1,000      |
| Notes Payable (due in four years) |            | $30,000     |
| Common Stock                      |            | $60,000     |
| Retained Earnings                 |            | $16,000     |
| Service Revenues                  |            | $112,000    |
| Salaries Expense                  | $43,000    |             |
| Rent Expense                      | $19,000    |             |
| Depreciation Expense              | $8,000     |             |
| Supplies Expense                  | $9,000     |             |
| Advertising Expense               | $14,000    |             |
| Utilities Expense                 | $13,000    |             |
| Interest Expense                  | $3,000     |             |
| **Totals**                        | **$250,000**| **$250,000**|

---

**Required Tasks:**

1. *Prepare an income statement for the year ended December 31, 2024.*

2. *Prepare the statement of stockholders’ equity.* Note that during the year, the company issued additional common stock of $11,000. This amount is included in the amount for Common Stock in the adjusted trial balance.

3. *Prepare the classified balance sheet for the year ended December 31, 2024.*

---

**Instructions
Transcribed Image Text:**Orange Designs - Financial Overview and Adjusted Trial Balance** Orange Designs provides consulting services related to home decoration, offering recommendations for a broad range of home décor solutions, including window treatments, carpet and wood flooring, paint colors, furniture, and more. Below is the year-end adjusted trial balance for Orange Designs. --- **ORANGE DESIGNS** *Adjusted Trial Balance* *December 31, 2024* | **Accounts** | **Debits** | **Credits** | |-----------------------------------|------------|-------------| | Cash | $6,000 | | | Accounts Receivable | $5,000 | | | Supplies | $3,000 | | | Prepaid Rent | $7,000 | | | Buildings | $120,000 | | | Accumulated Depreciation | | $22,000 | | Accounts Payable | | $5,000 | | Salaries Payable | | $5,000 | | Utilities Payable | | $1,000 | | Notes Payable (due in four years) | | $30,000 | | Common Stock | | $60,000 | | Retained Earnings | | $16,000 | | Service Revenues | | $112,000 | | Salaries Expense | $43,000 | | | Rent Expense | $19,000 | | | Depreciation Expense | $8,000 | | | Supplies Expense | $9,000 | | | Advertising Expense | $14,000 | | | Utilities Expense | $13,000 | | | Interest Expense | $3,000 | | | **Totals** | **$250,000**| **$250,000**| --- **Required Tasks:** 1. *Prepare an income statement for the year ended December 31, 2024.* 2. *Prepare the statement of stockholders’ equity.* Note that during the year, the company issued additional common stock of $11,000. This amount is included in the amount for Common Stock in the adjusted trial balance. 3. *Prepare the classified balance sheet for the year ended December 31, 2024.* --- **Instructions
### Instructions:

1. Prepare the statement of stockholders' equity. Note that during the year, the company issued additional stock of $11,000. This amount is included in the amount for Common Stock in the adjusted trial balance.
2. Prepare the classified balance sheet for the year ended December 31, 2024.

### Income Statement Preparation

**Complete this question by entering your answers in the tabs below:**

- **Required 1**
- **Required 2**
- **Required 3**

### Income Statement

**ORANGE DESIGNS**

**Income Statement**  
**For the Year Ended December 31, 2024**

| Revenue         | Amount |
|-----------------|--------|
|                 |        |
|                 |        |

| Expenses         | Amount |
|------------------|--------|
|                  |        |
|                  |        |
|                  |        |
|                  |        |
|                  |        |
| **Total Expenses** | **0** |

There are no graphs or diagrams present in this text. The income statement is a tabular layout indicating where revenues and expenses should be filled in, but it is currently left blank for input.
Transcribed Image Text:### Instructions: 1. Prepare the statement of stockholders' equity. Note that during the year, the company issued additional stock of $11,000. This amount is included in the amount for Common Stock in the adjusted trial balance. 2. Prepare the classified balance sheet for the year ended December 31, 2024. ### Income Statement Preparation **Complete this question by entering your answers in the tabs below:** - **Required 1** - **Required 2** - **Required 3** ### Income Statement **ORANGE DESIGNS** **Income Statement** **For the Year Ended December 31, 2024** | Revenue | Amount | |-----------------|--------| | | | | | | | Expenses | Amount | |------------------|--------| | | | | | | | | | | | | | | | | **Total Expenses** | **0** | There are no graphs or diagrams present in this text. The income statement is a tabular layout indicating where revenues and expenses should be filled in, but it is currently left blank for input.
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