Answer:
Please refer below
Explanation:
Income statement for the year ending Dec 31, 2016:
Description Amount
Service revenue (A) $43,900
Expenses:
Salaries expense $29,500
Supplies expense $8,800
Depreciation expense -furniture $550
Depreciation expense -building $2,700
Advertising expense $10,800
Total expenses (B) $52,350
Net Loss (A)-(B) -$8,450
Statement of retained earnings for the year ended Dec 31, 2016:
Description Amounts ($)
Opening Retained Earnings $29,350
Less: Net Loss -$8,450
Less: Dividend paid -$18,200
Closing Retained Earnings $1,700
Balance sheet for the year ended Dec 31, 2016:
Assets Amount ($) Liabilities Amount($)
Cash $13,800 Accounts Payable $10,500
Accounts Receivable $12,500 Salaries payable $7,800
Office Supplies $6,500 Unearned revenue $16,000
Land $18,700 Stockholders' Equity
Net furniture $3,400 Common Stock $31,000
Net buildings $12,100 Retained Earnings $1,700
Total Assets $67,000
Total Liabilities and Stockholders' Equity $67,000
