SKYMASTER AIRPLANE RENTALS

Income Statement
For the Year Ended December 31, 2011
Revenues
Expenses
Insurance expense
Wages expense
Advertising expense
Maintenance expense
Total expenses
Net Income

$ 217,000.00
$ 2,000.00
75,000.00
22,000.00
39,000.00
$ 138,000.00
$ 79,000.00

SKYMASTER AIRPLANE RENTALS

Statement of Retained Earnings
For the Year Ended December 31, 2011
Retained earnings, beginning (12/31/2010)
Add: Net Income
Less Dividends
Retained earnings, end

$ 130,000.00
79,000.00
52,000.00
$ 157,000.00

SKYMASTER AIRPLANE RENTALS

Balance Sheet
For the Year Ended December 31, 2011
Assets
Cash
Accounts receivable
Airplane
Hangar
Office furniture
Total Assets

$ 11,000.00
24,000.00
150,000.00
60,000.00
15,000.00
$ 260,000.00

Liabilities and Equity

Accounts payable
Notes payable
Total Liabilities

$ 36,000.00
47,000.00
$ 83,000.00

Common Stock
Retained Earnings
Total Equity
Total Liabilities and Equity

20,000.00
157,000.00
$ 177,000.00
$ 260,000.00

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.

Type of Account
Asset
Liability
Equity
x
x
x
x
x
x
x
x
x
x

Normal Balance
Debit
Credit
x
x
x
x
x
x
x
x
x
x

a.

Cash
Computer Equipment
Dolly Barton, Capital

b.

Prepaid Insurance
Cash

c.

d.

e.

Cash
Service Revenue
Office Supplies
Cash
Rent Expense
Cash

Debit
Credit
10,000
15,000
25,000
500
500
1,000
1,000
200
200
2,000
2,000

a.

b.

c.

d.

e.

Insurance expense
Prepaid Insurance

195.00

Office supplies expense

Office supplies

320.00

Rent earned
Unearned rent

500.00

Depreciation expense-office equipment

Accumulated depreciation - office eqpt

600.00

Salaries expense
Salaries payable

400.00

195.00

320.00

500.00

600.00

400.00

Dec. 31

Service Revenue
Income Summary
Income Summary
Salaries expense
Depreciation expense
Rent expense
Supplies expense
Utilities expense
Insurance expense

Debit
Credit
21,720.00
21,720.00
12,270.00
6,920.00
2,000.00
1,200.00
800.00
950.00
400.00

Income Summary
Sara Pollis, Capital

9,450.00

Sara Pollis, Capital

Sara Pollis, Withdrawals

4,800.00

9,450.00

4,800.00