Learning Objectives 1, 3, 4 > Problems Group A P-29A Preparing financial statements including a classified...

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1 $ 48100 ERICKSON REAL ESTATE APPRAISAL Income Statement For the year ended June 30,2018 Revenue : Service Revenue Expense : Insurance Expense 4400 Salaries Expense 33500 Supplies Expense 300 Interest Expense 8500 Utilities Expense 2700 Depreciation Expense - Building 8200 Total Expense $ 57600 Net Loss ($9500) 2. ERICKSON REAL ESTATE APPRAISAL Statement of Retained Earning For the year ended June 30,2018 Beginning balance of Retained Earning Less : Net Loss $ 39500 (9500) 30000 (27300) $ 2700 Less : Dividend Ending balance of Retained Earning

3 ERICKSON REAL ESTATE APPRAISAL Balancesheet For the year ended June 30,2018 Assets Amount ($) Amount ($) Current Asset Cash 4600 Account Receivable 5300 Office Supplies 1500 Prepaid Insurance 1700 Total Current asset 13100 Property, Plant and Equipments Land 13000 Building 82000 Less : Accumulated Depreciation - Building (25200) Property, Plant and Equipments - Net 69800 Total Assets 82900 Liabilities and Stockholders' Equity Current Liabilities Account Payable 18700 Interest Payable 8500 Salaries Payable 2400 Unearned Revenue 7600 Total Current Liabilities 37200 Long term liabilities Notes Payable(long-term) 40000 Stockholders' Equity Common Stock 3000 Retained Earning 2700 Total stockholders' equity 5700 Total liabilities and stockholders' equity 82900

4 Closing entries Date General Journal Jun-30 Service Revenue Income Summary (To close revenue account) Debit ($) Credit ($) 48100 48100 57600 4400 33500 300 Jun-30 Income Summary Insurance Expense Salaries Expense Supplies Expense Interest Expense Utilities Expense Depreciation Expense - Building (To close expense account) 8500 2700 8200 9500 Jun-30 Retained Earning Income Summary (To close income account) 9500