Use the following information for Exercises 13-15 below. (Algo) [The following information applies to the questions displayed below.] Stark company has the following adjusted accounts and balances at its D Notes payable Prepaid insurance Interest exnense $ 26,000 4,000 Accumulated depreciation-Buildin Accounts receivable 800 Iltilities eynense
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
![Required information
Use the following information for Exercises 13-15 below. (Algo)
[The following information applies to the questions displayed below.]
Stark company has the following adjusted accounts and balances at its December 31 year-end.
$ 26,000
4,000
800
$ 30,000
7,000
2,800
700
Accumulated depreciation-Buildings
Accounts receivable
Notes payable
Prepaid insurance
Interest expense
Accounts payable
Wages payable
Cash
Utilities expense
Interest payable
Unearned revenue
9,000
1,900
40,000
9,000
3,300
22,000
92,800 Supplies
95,000
1,550
500
Wages expense
Insurance expense
Supplies expense
Buildings
Dividends
190,000
10,500
9,500
1,550
Common stock
Depreciation expense-Buildings
Retained earnings
Services revenue
Exercise 3-14 (Algo) Preparing Financial Statements LO P5
Use the table of adjusted trial balance accounts for Stark Company to prepare the (1) income statement and (2) statement of retained
earnings for the year ended December 31 and (3) balance sheet at December 31. The Retained Earnings account balance was $92,800
on December 31 of the prior year.
Complete this question by entering your answers in the tabs below.
Statement of
Income
Retained
Balance Sheet
Statement
Earnings
Prepare the income statement for the year ended December 31.
STARK COMPANY
Income Statement
For Year Ended December 31
Expenses
Total expenses
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5d7c6df9-9072-40bc-ad85-7ace55fd8504%2Fcb531777-82f1-415d-a935-d144a84cd0df%2Fxridml8_processed.png&w=3840&q=75)
An income statement is a financial statement which shows the income and expenses of a company. It also shows if a company is profitable or losing money over a given time period.
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