Chapter 1, Problem 1.42AP

Preparing financial statements

Presented here are the accounts of Golden City Barbershop for the year ended December 31, 2016.

Land	$ 5,000
Notes Payable	37,000
Property Tax Expense	2,700
Dividends	32,000
Rent Expense	11,000
Salaries Expense	61,000
Salaries Payable	900
Service Revenue	195,000
Office Supplies	9,000
Retained Earnings, 12/31/15	49,000
Common Stock	$ 25,000
Accounts Payable	17,000
Accounts Receivable	900
Advertising Expense	13,000
Building	157,000
Cash	3,800
Equipment	19,000
Insurance Expense	2,500
Interest Expense	7,000

Requirements

1. 1. Prepare Golden City Barbershop’s income statement.
2. 2. Prepare the statement of retained earnings.
3. 3. Prepare the balance sheet.