Income Statement, Retained Earnings Statement, and Balance Sheet The following information relates to Ashton Appliances for 2019.
Accounts payable $16,800
Accounts receivable 70,300
Accumulated depreciation (building) 106,200
Accumulated depreciation (furniture) 27,600
Bonds payable (due in 7 years) 192,000
Building 300,000
Cash 41,450
Common stock 115,620
Cost of goods sold 511,350
Depreciation expense (building) 11,050
Depreciation expense (furniture) 12,000
Furniture 130,000
Income taxes expense 16,650
Income taxes payable 11,400
Insurance expense 36,610
Interest expense 15,500
Inventory 59,850
Other assets 92,800
Rent expense (store equipment) 79,200
Retained earnings, 12/31/2018 54,000
Salaries expense 101,000
Salaries payable 7,190
Sales revenue 946,950
Required:
Prepare a single-step income statement for 2019.
Ashton Appliances
Income Statement
For the Year Ended December 31, 2019
Revenues:
Sales revenue
Accounts receivable
Cash
Retained earnings
Salaries expense
Sales revenue
$
Expenses:
Cost of goods sold
Cash
Common stock
Cost of goods sold
Inventory
Sales revenue
$
Salaries expense
Accounts receivable
Accumulated depreciation
Cash
Salaries expense
Salaries payable
Rent expense
Bonds payable
Furniture
Prepaid rent
Rent expense
Sales revenue
Insurance expense
Accounts payable
Insurance expense
Inventory
Prepaid insurance
Retained earnings
Interest expense
Accounts receivable
Accumulated depreciation
Interest expense
Interest payable
Sales revenue
Depreciation expense (furniture)
Accounts payable
Accumulated depreciation
Depreciation expense (furniture)
Furniture
Salaries payable
Depreciation expense (building)
Accumulated depreciation
Building
Depreciation expense (building)
Cash
Sales revenue
Income taxes expense
Bonds payable
Cash
Common stock
Income taxes expense
Income taxes payable
Total expenses
Net income
$
Feedback
Prepare a retained earnings statement for 2019.
Ashton Appliances
Retained Earnings Statement
For the Year Ended December 31, 2019
Beginning retained earnings, January 1, 2019
Beginning retained earnings, January 1, 2019
Cash
Cost of goods sold
Ending retained earnings, December 31, 2019
Net income
$
Add: Net income
Add: Cash
Add: Common stock
Add: Net income
Add: Retained earnings
Add: Service revenue
Ending retained earnings, December 31, 2019
Beginning retained earnings, January 1, 2019
Cash
Ending retained earnings, December 31, 2019
Net income
Retained earnings
$
Feedback
Prepare a properly classified balance sheet as of December 31, 2019.
Ashton Appliances
Balance Sheet
December 31, 2019
Assets
Current assets:
Cash
Accounts payable
Bonds payable
Cash
Retained earnings
Sales revenue
$
Accounts receivable
Accounts payable
Accounts receivable
Common stock
Cost of goods sold
Wages expense
Inventory
Building
Furniture
Inventory
Salaries expense
Salaries payable
Total current assets
$
Property, plant and equipment:
Building
Building
Cash
Cost of goods sold
Inventory
Income taxes payable
$
Less: Accounts payable
Less: Accounts receivable
Less: Accumulated depreciation
Less: Depreciation expense (building)
Less: Retained earnings
$
Furniture
Insurance expense
Inventory
Rent expense
Sales revenue
$
Less: Accumulated depreciation
Less: Bonds payable
Less: Common stock
Less: Depreciation expense (furniture)
Less: Inventory
Total property, plant and equipmentAccounts payable
Bonds payable
Common stock
Other assets
Retained earnings
Total assets
$
Liabilities
Current liabilities:
Accounts payable
Accounts receivable
Building
Cash
Insurance expense
$
Bonds payable
Common stock
Furniture
Income taxes expense
Income taxes payable
Accumulated depreciation
Interest expense
Inventory
Salaries expense
Salaries payable
Total current liabilities
$
Long-term liabilities:
Accounts receivable
Bonds payable
Cash
Income taxes payable
Salaries payable
Total liabilities
$
Stockholders' Equity
Stockholders' equity:
Bonds payable
Building
Cash
Common stock
Cost of goods sold
$
Accounts receivable
Cash
FurnitureInventory
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
$