Chapter 1, Problem 60APSA

Problem 1-60A Income Statement and Balance Sheet

The following information for Rogers Enterprises is available at December 31, 2019 and includes all of Rogers’ financial statement amounts except retained earnings:

Required:

Prepare a single-step income statement and a c1assified balance sheet for the year ending

December 31, 2019, for Rogers.

To determine

Concept Introduction:

Balance Sheet: The Balance sheet is a summary of Assets, Liabilities and equity accounts that reports the financial position of the business as on a specific date. Assets are further classifies into Current Assets, Long Term Investments, Plant Assets and Intangible assets. And Liabilities are further classified into Current Liabilities and Long term liabilities.

Income Statement:

Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.

There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.

To Prepare:

A single step income statement and classifies balance sheet for Rogers Enterprises.

Answer to Problem 60APSA

A single step income statement and classifies balance sheet for Rogers Enterprises are as follows:

Rogers Enterprises
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Service Revenue	$463,500
Total Revenues (A)		$463,500
Less: Expenses:
Salaries expense	$235,200
Rent Expense	$135,000
Supplies Expense	$34,400
Interest Expense	$16,000
Income tax Expense	$12,800
Total Expenses (B)		$433,400
Net Income (A-B)		$30,100

Rogers Enterprises
Balance Sheet
As on Dec. 31, 2019
ASSETS
Current Assets:
Cash	$ 13,240
Accounts Receivables	$ 72,920
Supplies	$ 42,000
Prepaid Rent	$ 31,500	$ 159,660
Property, Plant and Equipment:		$ 90,000
Total Assets		$ 249,660
LIABILITIES AND EQUITY
LIABILITIES
Current Liabilities:
Income Taxes Payable	$ 4,150
Salaries Payable	$ 14,800	$ 18,950
Long Term Liabilities:
Notes Payable		$ 25,000
Equity:
Common Stock	$ 70,000
Retained earnings	$ 135,710	$ 205,710
Total Liabilities and Equity		$ 249,660

Explanation of Solution

A single step income statement and classifies balance sheet for Rogers Enterprises are prepared as follows:

Rogers Enterprises
Single Step Income Statement
For the year ended Dec. 31, 2019
Revenues:
Service Revenue	$463,500
Total Revenues (A)		$463,500
Less: Expenses:
Salaries expense	$235,200
Rent Expense	$135,000
Supplies Expense	$34,400
Interest Expense	$16,000
Income tax Expense	$12,800
Total Expenses (B)		$433,400
Net Income (A-B)		$30,100

Rogers Enterprises
Balance Sheet
As on Dec. 31, 2019
ASSETS
Current Assets:
Cash	$ 13,240
Accounts Receivables	$ 72,920
Supplies	$ 42,000
Prepaid Rent	$ 31,500	$ 159,660
Property, Plant and Equipment:		$ 90,000
Total Assets		$ 249,660
LIABILITIES AND EQUITY
LIABILITIES
Current Liabilities:
Income Taxes Payable	$ 4,150
Salaries Payable	$ 14,800	$ 18,950
Long Term Liabilities:
Notes Payable		$ 25,000
Equity:
Common Stock	$ 70,000
Retained earnings	$ 135,710	$ 205,710
Total Liabilities and Equity		$ 249,660