Question

The adjusted trial balance for Green Advertising Services is presented below: Account Title Office Supplies Cash Debit Credit Accounts Receivable Building Accumulated Depreciation—Building Furniture Accumulated Depreciation—Furniture Land Salaries Payable Accounts Payable Unearned Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Supplies Expense Depreciation Expense—Building Balance \( 14,000 \) 195,200 \( 195,200 18,400 14,100 \) 36,100 19,600 7,200 10,600 30,000 31,400 16,000 18,300 49,800 8,400 28,600 2,900 1,300 13,500 15,800 6,500 47,900 Depreciation Expense—Furniture Advertising Expense Total GREEN ADVERTISING SERVICES Adjusted Trial Balance December 31, 2018 Requirements 1. Prepare the income statement for the year ending December 31, 2018. 2. Prepare the statement of retained earnings for the year ending December 31, 2018. 3. Prepare the classified balance sheet as of December 31, 2018. Use the report form

Short answer

(1) Net loss is $4,900.

(2) Ending balance of retained earnings equals $8,200

(3) Total assets and total liabilities & Stockholders’ equity equals $72,000.

Step-by-step solution

Income Statement

Income statement is shown as follows:

GREEN ADVERTISING SERVICES
Income Statement
Year Ended December 31, 2018
Revenues
Service Revenue		$49,800
Expenses
Salaries Expense	$28,600
Supplies Expense	8,400
Depreciation Expense—Building	2,900
Depreciation Expense—Furniture	1,300
Advertising Expense	13,500
Total Expenses		54,700
Net Loss		$(4,900)

Statement of Retained Earnings

Statement of retained earnings is shown as follows:

GREEN ADVERTISING SERVICES
Statement of Retained Earnings
Year Ended December 31, 2018
Retained Earnings, January 1, 2018	$31,400
Net loss for the year	(4,900_
	26,500
Dividends	(18,300)
Retained Earnings, December 31, 2018	$8,200

Classified Balance Sheet

Balance Sheet is shown as follows:

GREEN ADVERTISING SERVICES
Balance Sheet
December 31, 2018
Assets
Current Assets:
Cash		$14,000
Office Supplies		6,500
Accounts Receivable		15,800
Total Current Assets			$36,300
Property, Plant, and Equipment:
Land		18,400
Building	47,900
Less: Accumulated Depreciation- Building	(36,100)	11,800
Furniture	19,600
Less: Accumulated Depreciation- Building	(14,100)	5,500
Total Property, Plant, and Equipment:			35,700
Total Assets			$72,000
Liabilities
Current Liabilities:
Accounts Payable		$10,600
Salaries Payable		7,200
Unearned Revenue		16,000
Total Current Liabilities:			$33,800
Total Liabilities			$33,800
Stockholders’ Equity
Common Stock		30,000
Retained Earnings		8,200
Total Stockholders’ Equity			38,200
Total Liabilities and Stockholders’ Equity			$72,000