Financial statements from the end-of-period spreadsheet Demo Consulting is a consulting firm owned and operated by Jesse Flatt The following end-of-period spreadsheet was prepared for the year ended August 31, 20Y9: Based on the preceding spreadsheet, prepare an income statement, statement of stockholders’ equity’, and balance sheet for Demo Consulting. During the year ended August 31, 20Y9, $15,000 of additional common stock was issued.

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To determine To Prepare: An income statement for the year ended August 31, 20Y9. To Prepare: The retained earnings statement for the year ended August 31, 20Y9. To Prepare: The balance sheet of D Consulting at August 31, 20Y9. Explanation Income statement: Income statement is a financial statement that shows the net income or net loss by deducting the expenses from the revenues and vice versa. Statement of Stockholders’ Equity : The financial statement, which shows the changes in the equity capital, due to contributions and net income for a given period, is known as statement of stockholders’ equity. Classified Balance Sheet: In order to improve the ease of understanding, a classified balance sheet is used. Classified balance sheet categorizes each item of assets, liabilities, and stockholders ‘equity into a specific category. D Consulting Income Statement For the Year Ended August 31, 20Y9 Particulars Amount ($) Amount ($) Revenues: Fees Earned 1,480,000 Expenses: Salary Expense 843,100 Supplies Expense 22,600 Depreciation Expense 11,800 Miscellaneous Expense 12,500 Total Expenses (890,000) Net Income $590,000) Table (1) D Consulting Statement of Stockholders’ Equity For the Year Ended August 31, 20Y9 Particulars Common stock Retained earnings Total Balance, September 1, 20Y8 $100,000 $810,000 $910,000 Issuance of common stock $15,000 0 $15,000 Net income for the month 0 $590,000 $590,000 Deduct - Dividends 0 $(30,000) $(30,000) Balance, August 31, 20Y9 $115,000 $1,370,000 $1,485,000 Table (2) D Consulting Balance Sheet

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Corporate Financial Accounting

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Carl Warren + 1 other

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Corporate Financial Accounting

15th Edition

Carl Warren + 1 other

Publisher: Cengage Learning

ISBN: 9781337398169

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To determine

To Prepare: An income statement for the year ended August 31, 20Y9.

To Prepare: The retained earnings statement for the year ended August 31, 20Y9.

To Prepare: The balance sheet of D Consulting at August 31, 20Y9.

Explanation of Solution

Income statement: Income statement is a financial statement that shows the net income or net loss by deducting the expenses from the revenues and vice versa.

Statement of Stockholders’ Equity: The financial statement, which shows the changes in the equity capital, due to contributions and net income for a given period, is known as statement of stockholders’ equity.

Classified Balance Sheet: In order to improve the ease of understanding, a classified balance sheet is used. Classified balance sheet categorizes each item of assets, liabilities, and stockholders ‘equity into a specific category.

D Consulting
Income Statement
For the Year Ended August 31, 20Y9
Particulars	Amount ($)	Amount ($)
Revenues:
Fees Earned		1,480,000
Expenses:
Salary Expense	843,100
Supplies Expense	22,600
Depreciation Expense	11,800
Miscellaneous Expense	12,500
Total Expenses		(890,000)
Net Income		$590,000)

Table (1)

D Consulting
Statement of Stockholders’ Equity
For the Year Ended August 31, 20Y9
Particulars	Common stock	Retained earnings	Total
Balance, September 1, 20Y8	$100,000	$810,000	$910,000
Issuance of common stock	$15,000	0	$15,000
Net income for the month	0	$590,000	$590,000
Deduct - Dividends	0	$(30,000)	$(30,000)
Balance, August 31, 20Y9	$115,000	$1,370,000	$1,485,000

Table (2)

D Consulting
Balance Sheet

Corporate Financial Accounting

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Corporate Financial Accounting

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