INSTITUTE OF BUSINESS ADMINISTRATION

MBA – FALL 2017

SUBJECT: ACCOUNTING AND FINANCE
ASSIGNMENT NO. 1
5 MARKS

After its second year of operations, the following amounts were taken from the accounting records of Lisko
Services Ltd. As of December 31, 2017. Lisko Services began its operations on January 1, 2016.

Amount in $ 2017 2016

Capital stock 35,000 14,000
Cash ? 38,500
Dividends 21,000 7,000
Fess earned 355,740 321,300
Interest earned 2,240 1,680
Land 196,000 105,000
Miscellaneous expense 9,800 9,520
Notes payable 28,000 21,000
Rent expense 39,200 33,600
Salaries expense 98,000 91,000
Taxes expense 28,000 25,200
Utilities expense 50,400 44,800

Required:

1. Prepare an income statement for the year ending December 31, 2017.

2. Prepare a retained earnings statement for the year ending December 31, 2016. (Note: The retained
earnings at January 1, 2016 was $108,500.)

3. Prepare a balance sheet as of December 31, 2017.

4. Prepare a statement of cash flows for the year ending December 31, 2017.