cash account payable

beg. bal. 5000 7000 beg. bal.

a. 20000 18000 b. h. 11000 7000 e.
c. 5000 28000 e. 10000 i.
d. 56000 3000 f. 13000 end. bal.
g. 8000 11000 h.
j. 3000 10000 k.
end. bal. 27000

Account Receivable note payable

beg. bal. 4000 0 beg. bal.
d. 14000 8000 g. 20000 a.
end. bal. 10000 20000 end. bal.

Supplies wage payable

beg. bal. 2000 0 beg. bal.
i. 10000 8000 l. 3000 o.
end. bal. 4000 3000 end. bal.

Small tools interest paybale

beg. bal. 6000 0 beg. bal.
f. 3000 1000 l. 1000 n.
end. bal. 8000 1000 end. bal.

equipment income taxes payable

beg. bal. 0 0 beg. bal.
b. 18000 4000 p.
end. bal. 18000 4000 end. bal.

other assets Accumulated depreciation

beg. bal. 9000 0 beg. bal.
end. bal. 9000 2000 m.
2000 end. bal.

depreciation expense unearned revenue

beg. bal. 0 0 beg. bal.
m. 2000 2000 CE 3000 j.
end. bal. 0 3000 end. bal.

wages expense common stock

beg. bal. 0 6000 beg. bal.
o. 3000 3000 CE 1000 c.
end. bal. 0 7000 end. bal.
 interest expense additional paid in capital
beg. bal. 0 9000 beg. bal.
n. 1000 1000 CE 4000 c.
end. bal. 0 13000 end. bal.

income tax expense retained earning

beg. bal. 0 4000 beg. bal.
p. 4000 4000 CE k. 10000 16000 closing entries
end. bal. 0 10000 end. Bal.

remaining expense service revenue

beg. bal. 0 0 beg. bal.
e. 35000 CE 70000 70000 d.
l. 9000 44000 CE 0 end. bal.
end. bal. 0

income statement
Furniture Refinishers, Inc.
income statement
for the year ended at December 31, 2017

Opereating Revenue
service revenue $ 70,000

Operating expenses
wage expense 3,000
depreciation expense 2,000
remaining expense 44,000
opereating income 21,000
other iems:
interest expense 1,000
income before tax 20,000
income tax expense 4,000
net income $ 16,000
earning per shares $ 0.23

statement of stakeholders' equity

Furniture Refinishers, Inc.
 statement of stakeholders' equity
for the year ended at December 31, 2017
common additional paid- retained
stock in capital earning
balance on December 31, 2016 6000 9000 4000
additional stock issurance 1,000 4,000
net income for 2017 16,000
dividends for 2017 - 10,000
balance on December 31, 2017 7,000 13,000 10,000

Balance Sheet
Furniture Refinishers, Inc.
Balance Sheet
At December 31, 2017
Assset
current assets
Cash $ 27,000
Account receivables 10,000
Supplies 8,000
Small tools 4,000
total current assets 49,000
Equipment 18,000
Accumulated depreciation - 2,000
Net book value 16,000

other assets 9,000

total assets 74,000

Liabilities and stokeholders' equity

Liabilities
Accounts payable 13,000
Notes payable 20,000
Wages paybale 3,000
Interest paybale 1,000
Income taxes payable 4,000
Unearned revenue 3,000
Total liabilities 44,000
Stockholders' Equity
Common stock 7,000
Additional paid-in capital 13,000
Retained Earning 10,000
Total stockholders' Equity 30,000
Total liabilities and stokeholders' equity 74,000

a. F 20,000
b. I - 18,000
c. F 5,000
d. O 56,000
e. O - 28,000
f. O - 3,000
g. O 8,000
h. O - 11,000
i. NE NE
j. O 3,000
k. F - 10,000

December 31,2017 , Closing Entry

Dr. Cr.
Service Revenue 70,000
depreciation expense 2,000
wages expense 3,000
interest expense 1,000
income tax expense 4,000
remaining expenses 44,000
retained earning 16,000

a. current ratio
= 49000/44000 = 1.113636

b. total asset turnover

= 70000/((26000+74000)/2) = 1.4

c. net profit margin

= 16000/70000 = 0.228571
jornal entries
Dr
a. cash (+A) 20,000
note payable (+L)
b. equipment (+A) 18,000
cash (-A)
c. cash (+A) 5,000
common stock (+SE)
Additional paid-in capital (+SE)
d. cash (+A) 56,000
account receivables (+A) 14,000
Service revenue(+R,+SE)
e. Remaining expense (+E, -SE) 35,000
Account payable (+L)
cash (-A)
f. Small tools (+A) 3,000
cash (-A)
g. cash (+A) 8,000
account receivable (-A)
h. account payable (-L) 11,000
cash (-A)
i. supplies (+A) 10,000
Account payable (+L)
j. cash (+A) 3,000
unearned revenue (+L)
k. retained earning (-SE) 10,000
cash (-A)
l. Remaining expense (+E, -SE) 9,000
supplies (-A)
small tools (-A)
m. depreciation expense (+E, -SE) 2,000
accumulated depreciation (+XA, -A)
n. interest expense (+E, -SE) 1,000
interest payable (+L)
o. wage expense (+E, -SE) 3,000
wages payable (+L)
p. income tax expense (+E, -SE) 4,000
income tax payable (+L)
closing entries
total stockholders'
equity
19000
5,000
16,000
- 10,000
30,000
Cr

20,000

18,000

1,000
4,000

70,000

7,000
28,000

3,000

8,000

11,000

10,000

3,000

10,000

8,000
1,000

2,000

1,000

3,000

4,000
1)
a. Accrued expense
b. Deferred expense
c. Accrued revenue
d. Deferred expense
e. Deferred expense
f. Deferred revenue
g. Accrued revenue

2)
a. wage expense (+E, -SE) 2,700
wage payable (+L) 2,700
b. office supplies expense (+E, -SE) 675
office supplies (-A) 675
c. rent receivable (+A) 1,120
rent revenue (+R, +SE) 1,120
d. depreciation expense (+E, -SE) 12,100
accumulated depreciation (=XA, -A) 12,100
e. insurance expense (+E, -SE) 600
prepaid insurance (-A) 600
f. unearned rent revenue (-L) 3,200
rent revenue (+R, +SE) 3,200
g. repair accounts receivable (+A) 800
repair shop revenue (+R, +SE) 800
 balance sheet Income statement
transaction assets liabilities stockholders' equity revenue expenses net income
a. NE +2700 -2700 NE +2700 -2700
b. -675 NE -675 NE +675 -675
c. +1120 NE +1120 +1120 NE +1120
d. -12100 NE -12100 NE +12100 -12100
e. -600 NE -600 NE +600 -600
f. NE -3200 +3200 +3200 NE +3200
g. +800 NE +800 +800 NE +800