Context for Question 2: These financial statement items are for Evans Corporation at year-end, December 31,2020.

1a.

Evans Corporation

Income Statement

At year-end, December 31,2020

Revenue
Service revenue	$72,100
Rent revenue	$8,500
Total Revenue		$80,600
Expenses:
Salaries and wages expense	$50,700
Utilities expense	$22,600
Rent expense	$4,000
Total Expense		$77,300
Net Income		$3,300

Retained Earnings for the year ended December 31, 2020

Retained earnings (beginning )	$42,200
Add: Net Income	$3,300
Less: Dividend	($2,000)
Retained Earnings December 31, 2020	$43,500

1b.

Evans Corporation

Balance Sheet

December 31,2020

Assets
Current Assets
Cash	$30,200
Accounts receivable	$12,780
Total Current Assets		$42,980
Equipment		$15,000
Total Assets		$57,980
Liabilities
Accounts payable	$4,100
Salaries and wages payable	$2,580
Notes payable	$1,800
Total Liabilities		$8,480
Stockholder's Equity
Common Stock	$6,000
Retained Earnings	$43,500
Total Stockholder's Equity		$49,500
Total Liabilities and Stockholder's Equity		$57,980

2. Record the following business transactions in the accounting equation for Barnes Corp during their first month of business, January 2021.

a. Issued Common Stock for $200,000 cash.

b. Purchased $500 of supplies on credit.

c. Purchased land for $75,000, paying $5,000 in cash and signing a note for the balance.

d. Paid $200 of the balance owed for office supplies purchased in transaction b.

e. Borrowed $15,000 cash from a local bank, payable in 3 years.

f. Purchased equipment for $25,000.

After recording all transactions, prepare a classified balance sheet for Barnes Corp at January 31, 2021.