Violet Designs provides consulting services related to home decoration. Violet 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 Violet Designs. VIOLET DESIGNS Adjusted Trial Balance December 31, 2024 Accounts Debits Credits Cash $ 4,900 Accounts Receivable 3,900 Supplies 1,900 Prepaid Rent 5,900 Buildings 109,000 Accumulated Depreciation $ 20,900 Accounts Payable 2,900 Salaries Payable 3,900 Utilities Payable 1,200 Notes Payable (due in four years) 19,000 Common Stock 49,000 Retained Earnings 14,900 Service Revenues 115,100 Salaries Expense 41,900 Rent Expense 17,900 Depreciation Expense 6,900 Supplies Expense 7,900 Advertising Expense 12,900 Utilities Expense 11,900 Interest Expense 1,900 Totals $ 226,900 $ 226,900 Required: Prepare an income statement for the year ended December 31, 2024. 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, 2024.
Violet Designs provides consulting services related to home decoration. Violet 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 Violet Designs. VIOLET DESIGNS Adjusted Trial Balance December 31, 2024 Accounts Debits Credits Cash $ 4,900 Accounts Receivable 3,900 Supplies 1,900 Prepaid Rent 5,900 Buildings 109,000 Accumulated Depreciation $ 20,900 Accounts Payable 2,900 Salaries Payable 3,900 Utilities Payable 1,200 Notes Payable (due in four years) 19,000 Common Stock 49,000 Retained Earnings 14,900 Service Revenues 115,100 Salaries Expense 41,900 Rent Expense 17,900 Depreciation Expense 6,900 Supplies Expense 7,900 Advertising Expense 12,900 Utilities Expense 11,900 Interest Expense 1,900 Totals $ 226,900 $ 226,900 Required: Prepare an income statement for the year ended December 31, 2024. 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, 2024.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Violet Designs provides consulting services related to home decoration. Violet 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
VIOLET DESIGNS | ||
Adjusted Trial Balance | ||
December 31, 2024 | ||
Accounts | Debits | Credits |
---|---|---|
Cash | $ 4,900 | |
3,900 | ||
Supplies | 1,900 | |
Prepaid Rent | 5,900 | |
Buildings | 109,000 | |
$ 20,900 | ||
Accounts Payable | 2,900 | |
Salaries Payable | 3,900 | |
Utilities Payable | 1,200 | |
Notes Payable (due in four years) | 19,000 | |
Common Stock | 49,000 | |
14,900 | ||
Service Revenues | 115,100 | |
Salaries Expense | 41,900 | |
Rent Expense | 17,900 | |
Depreciation Expense | 6,900 | |
Supplies Expense | 7,900 | |
Advertising Expense | 12,900 | |
Utilities Expense | 11,900 | |
Interest Expense | 1,900 | |
Totals | $ 226,900 | $ 226,900 |
Required:
- Prepare an income statement for the year ended December 31, 2024.
- 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, 2024.
Expert Solution
Step 1
The income statement, balance sheet and statement of shareholders' equity are the important financial statements of the business. The financial statements are prepared using the adjusted trial balance of the business. The balance sheet represents the financial position of the business with assets and liabilities at the end of the accounting period.
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