Problem 3: Preparing Financial Statements and Closing Entries (29 marks) The adjusted trial balance of Beanstalk...

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Problem 3: Preparing Financial Statements and Closing Entries (29 marks) The adjusted trial balance of Beanstalk Company is as follows: Cash Accounts receivable Prepaid insurance Office supplies Office Equipment Accumulated depreciation - Office Equipment Accounts payable Salaries payable Unearned Revenue Long-term Note Payable Common stock Retained earnings Dividends Revenue earned Beanstalk Company Adjusted Trial Balance December 31, 2019 Depreciation expense - Office Equipment Advertising expense Insurance expense Office supplies expense Interest expense Salaries expense Totals 20,800 16,200 4,400 2,300 44,000 12,000 6,000 12,000 4,000 3,700 1,000 39,000 $165.400 $ 18,000 8,000 2,600 1,000 20,000 20,000 16,000 79,800 $165.400 Required: For the year ended December 31, 2019, a. prepare an income statement (8 marks) b. prepare a statement of changes in stockholders' equity (no changes to common stock have taken place during the year (5 marks) c. prepare a balance sheet (8.5 marks) d. prepare all necessary closing entries. Use an "income summary" (7.5 marks) Problem 3: Preparing Financial Statements and Closing Entries (29 marks) The adjusted trial balance of Beanstalk Company is as follows: Cash Accounts receivable Prepaid insurance Office supplies Office Equipment Accumulated depreciation - Office Equipment Accounts payable Salaries payable Unearned Revenue Long-term Note Payable Common stock Retained earnings Dividends Revenue earned Beanstalk Company Adjusted Trial Balance December 31, 2019 Depreciation expense - Office Equipment Advertising expense Insurance expense Office supplies expense Interest expense Salaries expense Totals 20,800 16,200 4,400 2,300 44,000 12,000 6,000 12,000 4,000 3,700 1,000 39,000 $165.400 $ 18,000 8,000 2,600 1,000 20,000 20,000 16,000 79,800 $165.400 Required: For the year ended December 31, 2019, a. prepare an income statement (8 marks) b. prepare a statement of changes in stockholders' equity (no changes to common stock have taken place during the year (5 marks) c. prepare a balance sheet (8.5 marks) d. prepare all necessary closing entries. Use an "income summary" (7.5 marks)

Answer rating: 100% (QA)

Requirement a Beanstalk Company Income Statement For the Year Ended December 31 2019 Particulars Rev... View the full answer