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 Debits Credits Cash $ 4,300 Accounts Receivable 3,300 Supplies 1,300 Prepaid Rent 5,300 Buildings 103,000 Accumulated Depreciation $ 20,300 Accounts Payable 2,300 Salaries Payable 3,300 Utilities Payable 1,200 Notes Payable (due in four years) 13,000 Common Stock 43,000 Retained Earnings 14,300 Service Revenues 116,900 Salaries Expense 41,300 Rent Expense 17,300 Depreciation Expense 6,300 Supplies Expense 7,300 Advertising Expense 12,300 Utilities Expense 11,300 Interest Expense 1,300 Totals $ 214,300 $ 214,300 Required: Prepare an income statement for the year ended December 31, 2021. Prepare the statement of stockholders’ equity, note that during the year the company issued additional common stock of $12,000. This amount is included in the amount for Common Stock in the adjusted trial balance. Prepare the classified balance sheet for the year ended December 31, 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	Debits		Credits
Cash	$	4,300
Accounts Receivable		3,300
Supplies		1,300
Prepaid Rent		5,300
Buildings		103,000
Accumulated Depreciation				$	20,300
Accounts Payable					2,300
Salaries Payable					3,300
Utilities Payable					1,200
Notes Payable (due in four years)					13,000
Common Stock					43,000
Retained Earnings					14,300
Service Revenues					116,900
Salaries Expense		41,300
Rent Expense		17,300
Depreciation Expense		6,300
Supplies Expense		7,300
Advertising Expense		12,300
Utilities Expense		11,300
Interest Expense		1,300
Totals	$	214,300		$	214,300

Required:

Prepare an income statement for the year ended December 31, 2021.
Prepare the statement of stockholders’ equity, note that during the year the company issued additional common stock of $12,000. This amount is included in the amount for Common Stock in the adjusted trial balance.
Prepare the classified balance sheet for the year ended December 31, 2021.