On December 31, Fighting Okra Cooking Services reports the following revenues and expenses.
Service revenue $77,000 Postage expense 1,600 Legal fees expense 2,500 Rent expense 10,800 Salaries expense 26,000 Supplies expense 15,500 In addition, the balance of common stock at the beginning of the year was $300,000, and the balance of retained earnings was $36,000. During the year, the company issued additional shares of common stock for $27,000 and paid dividends of $14,000. Required: a. Prepare an income statement. b. Prepare a statement of stockholders' equity.
A. Income statement
Legal fees expense
B. Statement of stockholder equity
This is computed as
= Total assets - Total liabilities
= Retained earnings $36,00 + Dividends $14,000 + Net income $20,600 - $300,000
because she sucked. : )
(but so does trump, don't @ me)