Riley, incorporated reports the following amounts at the end of the year: cash $ 57,200 service revenue $ 97,900 buildings 44,000 salaries expense 61,800 accounts payable 8,700 equipment 70,000 interest expense 3,500 supplies 3,700 advertising expense 10,800 notes payable 45,000 in addition, the company had common stock of $68,000 at the beginning of the year and issued an additional $6,200 during the year. the company also had retained earnings of $27,200 at the beginning of the year and paid dividends of $2,000 during the year. prepare the income statement, statement of stockholders' equity, and balance sheet. a. income statement.

Explanation:

Before preparing the income statement, first, we have to compute the net income or net loss. So, the calculation is shown below:

In the simplest form, the net income = Total revenue - total expenses

= Service Revenue - interest expense - salaries expense - Advertising Expense

= $97,900 - $3,500 - $61,800 - $10,800

= $21,800

The preparation of the income statement, statement of stockholder's equity and the balance sheet are presented in the spreadsheet. Kindly find the attachment below:

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23