Preparing financial statements and evaluating business performance
The adjusted trial balance of Big Papi Music Company at June 30, 2020, follows:
	BIG PAPI MUSIC COMPANY
	Adjusted Trial Balance
	June 30, 2020
	Account	Debit	Credit
	Cash	3,600
	Accounts receivable	38,800
	Inventory	17,200
	Supplies	200
	Furniture	40,000
	Accumulated depreciation		8,400
	Accounts payable		13,300
	Salary payable		1,200
	Unearned sales revenue		6,700
	Note payable, long–term		15,000
	Common stock		4,900
	Retained earnings		31,100
	Dividends	40,500
	Sales revenue		180,000
	Sales returns	5,000
	Cost of goods sold	82,500
	Selling expense	19,200
	General expense	12,000
	Interest expense	1,600
	Total	260,600	260,600
Requirements
1. Prepare Big Papi’s single-step income statement for the year.
2. Prepare Big Papi’s statement of owners' equity for the year.
3. Prepare Big Papi’s balance sheet for the year.
4. Answer these questions about the company:
a. Was the result of operations for the year a profit or a loss? How much?
b. How much in total economic resources does the company have as it moves into the new year?
c. How much does the company owe to creditors?
d. What is the dollar amount of the stockholders’ equity in the business at the end of the year?