Question

Presented here are the accounts of Hometown Décor Company for the year ended December 31, 2018. Land \( 13,000 Common Stock \) 28,000 Notes Payable 33,000 Accounts Payable 14,000 Property Tax Expense 2,800 Accounts Receivable 800 Dividends 36,000 Advertising Expense 17,000 Rent Expense 14,000 Building 170,400 Salaries Expense 67,000 Cash 2,800 Salaries Payable 1,300 Equipment 17,000 Service Revenue 225,000 Insurance Expense 1,700 Office Supplies 8,000 Interest Expense 6,800 Retained Earnings, Dec. 31, 2017 56,000 Requirements 1. Prepare Hometown Décor Company’s income statement. 2. Prepare the statement of retained earnings. 3. Prepare the balance sheet

Short answer

Hometown Décor Company
Balance Sheet
December 31, 2018
Assets		Liabilities
Cash	$2,800	Salaries Payable	$1,300
Building	170,400	Accounts Payable	14,000
Office Supplies	8,000	Notes Payable	33,000
Accounts Receivable	800	Total Liabilities	48,300
Equipment	17,000	Stockholders’ Equity
Land	13,000	Common Stock	28,000
		Retained Earnings	135,700
		Total Stockholders’ Equity	163,700
Total Assets	$212,000	Total Liabilities and Stockholders’ Equity	$212,000

Step-by-step solution

Explanation on Balance Sheet

Balance sheet reports the balances of assets, liabilities, and stockholders’ equity for the particular accounting period.

Details of balance sheet

In the balance sheet, total assets equals $212,000, total liabilities equals $48,300, and total stockholders’ equity equals $163,700.