St Leo ACC 201 CH 4 # 2.docx - Begin by selecting the labels to report on the income statement Remember that the income statement reports revenues and

St Leo ACC 201 CH 4 # 2.docx - Begin by selecting the...

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Begin by selecting the labels to report on the income statement. Remember that the income statement reports revenues and expenses. Save Accounting Table... + Copy to Clipboard... + Estrada Real Estate Appraisal Income Statement Year Ended June 30, 2018 Revenues: Service Revenue Expenses: Salaries Expense Interest Expense Depreciation Expense—Building Insurance Expense Utilities Expense Supplies Expense Total Expenses Net Income (Loss) Now enter the revenue and expense amounts and compute the total expenses and net income or loss for the period. Remember that net income or net loss equals total revenues minus total expenses. (Use a minus sign or parentheses to show a net loss.) Save Accounting Table... + Copy to Clipboard... + Estrada Real Estate Appraisal Income Statement Year Ended June 30, 2018
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Revenues: Service Revenue $48,800 Expenses: Salaries Expense $32,600 Interest Expense 8,300 Depreciation Expense—Building 7,100 Insurance Expense 4,500 Utilities Expense 2,800 Supplies Expense 800 Total Expenses 56,100 Net Income (Loss) $(7,300) Requirement 2. Prepare the company's statement of retained earnings for the year ended June 30 comma 2018June 30, 2018. The statement of retained earnings shows the changes in the retained earnings account for a specific period. Thus, the statement begins with the retained earnings balance at the beginning of the period and ends with the retained earnings balance at the end of the period. Recall that the Retained Earnings account increases with net income and decreases with net losses and/or dividends paid to stockholders. Begin by selecting the labels of the statement. Save Accounting Table... + Copy to Clipboard... + Estrada Real Estate Appraisal Statement of Retained Earnings Year Ended June 30, 2018 Retained Earnings, July 1, 2017 Net loss for the year Dividends Retained Earnings, June 30, 2018
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Now complete the statement of retained earnings. Note that the net loss from the income statement carries forward to this statement. Use the adjusted trial balance to assist you in determining the beginning retained earnings balance and dividends for the period. Calculate the ending retained earnings balance to complete the statement. Save Accounting Table... + Copy to Clipboard... + Estrada Real Estate Appraisal Statement of Retained Earnings Year Ended June 30, 2018 Retained Earnings, July 1, 2017 $34,500 Net loss for the year (7,300) Dividends (27,000) Retained Earnings, June 30, 2018 $200 Requirement 3. Prepare the company's classified balance sheet in report form at June 30 comma 2018June 30, 2018. Every balance sheet is prepared in a similar manner. bullet• Each asset account is listed separately and then totaled. Cash is typically always listed first. bullet• Liabilities are listed separately and then totaled. Liabilities that are to be paid first are listed first. bullet• The retained earnings balance reported in the stockholders' equity section of the statement is taken directly from the statement of retained earnings.
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