Extra4.2 These financial statement items are for Basten Tax Services at year-end, December 31, 2025 Prepare...

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Extra4.2 These financial statement items are for Basten Tax Services at year-end, December 31, 2025 Prepare financial statements. Salaries and wages payable £2,080 Notes payable (long-term) Salaries and wages expense 48.700 Cash Utilities expense 22,200 Accounts receivable 34.400 Accumulated depreciation-equipment Equipment Accounts payable Service revenue Rent revenue Share capital-ordinary Impairment Loss Prepaid Insurance £1,800 14,200 9,980 6,000 4.100 Dividends 3,000 63,000 Depreciation expense 4,000 8.500 Retained earnings (beginning of the year) 31,200 20,000 Allowance for Impairment Loss 470 1,000 1,000 400 270 Share Premium - Ordinary 2,000 Unearned Service Revenue Insurance Expense Additional Informaiton a. During 2025, the company issued new ordinary shares in exchange for new equipment for 1,000 shares with the par value of £1 per share. The company received £1,500 in total. b. The prepaid insurance account is for a three-year insurance policy starting from 1 July 2025 for £2,400. The balance at 31 December represents the remaining period of 30 months. c. Unearned Service Revenue will expire in 2026. Instructions a. Prepare an income statement and statement of changes in shareholders' equity. b. Prepare a classified statement of financial position at December 31. Extra4.2 These financial statement items are for Basten Tax Services at year-end, December 31, 2025 Prepare financial statements. Salaries and wages payable £2,080 Notes payable (long-term) Salaries and wages expense 48.700 Cash Utilities expense 22,200 Accounts receivable 34.400 Accumulated depreciation-equipment Equipment Accounts payable Service revenue Rent revenue Share capital-ordinary Impairment Loss Prepaid Insurance £1,800 14,200 9,980 6,000 4.100 Dividends 3,000 63,000 Depreciation expense 4,000 8.500 Retained earnings (beginning of the year) 31,200 20,000 Allowance for Impairment Loss 470 1,000 1,000 400 270 Share Premium - Ordinary 2,000 Unearned Service Revenue Insurance Expense Additional Informaiton a. During 2025, the company issued new ordinary shares in exchange for new equipment for 1,000 shares with the par value of £1 per share. The company received £1,500 in total. b. The prepaid insurance account is for a three-year insurance policy starting from 1 July 2025 for £2,400. The balance at 31 December represents the remaining period of 30 months. c. Unearned Service Revenue will expire in 2026. Instructions a. Prepare an income statement and statement of changes in shareholders' equity. b. Prepare a classified statement of financial position at December 31.

Answer rating: 100% (QA)

a Income Statement and Statement of Changes in Shareholders Equity Income Statement Service Revenue Given 63000 Rent Revenue Given 8500 Expenses Salar... View the full answer