The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The common stock was $120,000 and the retained earnings were $60,000 at April 1, the beginning of the current year. During the year, shareholders purchased an additional $25,000 in stock. Accounts Amount Accounts Amount Accounts payable $2,000 Miscellaneous expense $460 Accounts receivable 10,340 Office expense 530 Cash 21,420 Supplies 1,670 Fees earned 75,790 Wages expense 29,070 Land 47,000 Dividends 16,570 Building 157,630 Required: Prepare an income statement for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:) on the income statement.
The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The common stock was $120,000 and the retained earnings were $60,000 at April 1, the beginning of the current year. During the year, shareholders purchased an additional $25,000 in stock. Accounts Amount Accounts Amount Accounts payable $2,000 Miscellaneous expense $460 Accounts receivable 10,340 Office expense 530 Cash 21,420 Supplies 1,670 Fees earned 75,790 Wages expense 29,070 Land 47,000 Dividends 16,570 Building 157,630 Required: Prepare an income statement for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:) on the income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The common stock was $120,000 and the retained earnings were $60,000 at April 1, the beginning of the current year. During the year, shareholders purchased an additional $25,000 in stock.
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Accounts
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Amount
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Accounts
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Amount
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| Accounts payable | $2,000 | Miscellaneous expense | $460 |
| 10,340 | Office expense | 530 | |
| Cash | 21,420 | Supplies | 1,670 |
| Fees earned | 75,790 | Wages expense | 29,070 |
| Land | 47,000 | Dividends | 16,570 |
| Building | 157,630 |
Required:
| Prepare an income statement for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:) on the income statement. |
Labels and Amount Descriptions
| Labels | |
| Expenses | |
| For the Year Ended March 31 | |
| March 31 | |
| Amount Descriptions | |
| Common stock | |
| Decrease in retained earnings | |
| Dividends | |
| Increase in retained earnings | |
| Net income for the year | |
| Net income | |
| Net loss for the year | |
| Net loss | |
| Retained earnings | |
| Retained earnings, April 1 | |
| Retained earnings, March 31 | |
| Total expenses | |
| Total assets | |
| Total liabilities and |
Income Statement
Prepare an income statement for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:) on the income statement.
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Thompson’s Computer Services
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