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Preparing Financial Statements

Brown Inc. prepared the following adjusted trial balance on December $31$ based on its first year of operations. Using this adjusted trial balance, prepare an income statement for the year ended December $31$ and a balance sheet as of December $31.$

Adjusted Trial Balance

December $31$

Accounts Debit Credit

Cash $$6,600$

Accounts receivable $3,000$

Prepaid insurance $1,200$

Other assets $5,200$

Equipment, net $20,000$

Accounts payable $$4,000$

Note payable $8,000$

Common stock $8,000$

Service revenue $40,000$

Selling expenses $8,000$

General and administrative expenses $15,000$

Interest expense $1,000$

Totals $$60,000$ $$60,000$

$$Note: Do not use negative signs $(-)$ in your answer

Income Statement

Balance Sheet

Brown Inc.

Income Statement

December $31$

Revenues:

Answer $1$

Answer $2$

Expenses:

Answer $3$

Answer $4$

Answer $5$

Answer $6$

Answer $7$ Income Statement

Balance Sheet

Brown Inc.

Income Statement

December $31$ Preparing Financial Statements

Brown Inc. prepared the following adjusted trial balance on December $31$ based on its first year of

operations. Using this adjusted trial balance, prepare an income statement for the year ended December

$31$ and a balance sheet as of December $31.$

$-$Note: Do not use negative signs $(-)$ in your answer Income Statement

Balance Sheet

Brown Inc.

Balance Sheet

December $31$