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Constructing an Income Statement

Given the following year-end balances, prepare an income statement for the year ending December 31, 20X4 and a classified balance sheet for Shelly Company dated December 31, 2004.

Interest Expense : $ 2,000
Beginning Retained Earnings : 13,100
Depreciation Expense : 5,200
Cash : 26,900
Accounts Payable : 3,300
Rent Expense : 7,200
Accumulated Depreciation : 13,500
Wage Expense : 59,200
Prepaid Rent : 1,400
Contributed Capital : 9,000
Accounts Receivable : 13,600
Wages Payable : 3,200
Equipment : 63,000
Sales : 249,600
Inventory : 14,400
Long-term Note Payable : 20,000
Income tax Expense : 24,500
Dividends Declared : 21,000
Cost of Goods Sold (Expense) : 94,300
Dividends Payable : 21,000

Solution Summary

The expert constructs an income statement.

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