Following are the accounts and balances from the adjusted trial balance of Stark Company. Notes payable$12,000 Accumulated depreciation-Buildings$16,000 Prepaid insurance 2,600 Accounts receivable 4,200 Interest expense 520 Utilities expense 1,400 Accounts payable 2,000 Interest payable 140 Wages payable 500 Unearned revenue 850 Cash 12,000 Supplies expense 220 Wages expense 7,600 Buildings 50,000 Insurance expense 1,900 Stark, Withdrawals 3,500 Stark, Capital 30,800 Depreciation expense-Buildings 2,500 Services revenue 25,000 Supplies 850 Prepare the (1) income statement and (2) statement of owner's equity for the year ended December 31, and (3) balance sheet at December 31. The Stark, Capital account balance was $30,800 on December 31 of the prior year.

According to the given question, we are required to prepare the income statement, statement of…

Answered: Following are the accounts and balances…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter22: End-of-fiscal-period Work For A Corporation

Section: Chapter Questions

Problem 1AP

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Following are the accounts and balances from the adjusted trial balance of Stark Company.


Notes payable	$	12,000	Accumulated depreciation-Buildings	$	16,000
Prepaid insurance		2,600	Accounts receivable		4,200
Interest expense		520	Utilities expense		1,400
Accounts payable		2,000	Interest payable		140
Wages payable		500	Unearned revenue		850
Cash		12,000	Supplies expense		220
Wages expense		7,600	Buildings		50,000
Insurance expense		1,900	Stark, Withdrawals		3,500
Stark, Capital		30,800	Depreciation expense-Buildings		2,500
Services revenue		25,000	Supplies		850

Prepare the (1) income statement and (2) statement of owner's equity for the year ended December 31, and (3) balance sheet at December 31. The Stark, Capital account balance was $30,800 on December 31 of the prior year.

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