ACCOUNTING BASICS PART TWO PREPARING THE FINANCIAL STATEMENTS FINANCIAL STATEMENT EXAMPLE
FAMILY HEALTH CARE P.C. Income Statement For the Month Ended October 31, 2011 Revenues: Fees Earned
$6,400
Operating Expenses: Wages Expense Rent Expense Utilities Expense Internet Expense Miscellaneous Expense
$1,370 950 540 100 220
Total Operating Expenses
$3,180
Net Income
$3,220
FAMILY HEALTH CARE P.C. Retained Earnings Statement For the Month Ended October 31, 2011 Retained Earnings, October 1, 2011 Net Income for October Less: dividends Retained Earnings October 31, 2011
$1,100 3,220 1,000
2,220 $3,320
FAMILY HEALTH CARE P.C. Balance Sheet October 31, 2011 Assets Cash Land Total Assets
$ 7,320 12,000 19,320 Liabilities
Notes Payable
$10,000 Stockholders’ Equity
Capital stock Retained earnings Total stockholders’ equity Total liabilities and stockholders’ equity
$6,000 3,320 9,320 $19,320
ACCOUNTING BASICS PART TWO PREPARING THE FINANCIAL STATEMENTS FINANCIAL STATEMENT EXAMPLE
The amounts of the assets and liabilities of the ABC Travel Service as of June 30, 2011, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings were $315,000 and the capital stock was $135,000 as of July 1, 2010, the beginning of the current year. Dividends of $270,000 were paid during the current year
.
Accounts Payable
$107,250
Accounts Receivable
282,150
Cash
477,450
Fees Earned Miscellaneous Expense
2,368,800 24,000
Rent Expense
340,200
Supplies
30,150
Supplies Expense
63,900
Taxes Expense
50,400
Utilities Expense
202,500
Wages Expense
1,185,300
1. Prepare an Income Statement for the current year ended June 30, 2011. 2. Prepare a Retained Earnings statement for the current year ended June 30, 2011. 3. Prepare a Balance Sheet as of June 30, 2011.