Accounting Statements Construction for Barker Company

School: Park University - Course: AC 201 - Subject: Accounting

The following accounts and balances were drawn from the records of Barker Company at December 31, Year 2. Supplies$ 1,000Beginning retained earnings$ 9,300 Cash flow from investingactivities(5,200)Cash flow from financing activities (5,000) Prepaid insurance1,200Rent expense2,500 Service revenue65,200Dividends3,000 Other operating expenses41,000Cash48,000 Supplies expense1,100Accounts receivable14,200 Insurance expense2,100Prepaid rent4,800 Beginning common stock40,000Unearned revenue6,400 Cash flow from operating activities 15,600Land24,000 Common stock issued5,000Accounts payable17,000 Required Use the accounts and balances from Barker Company to construct an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows (show only totals for each activity on the statement of cash flows). Use the accounts and balances from Barker Company to construct an income statement. BARKER COMPANY Income Statement For the Year Ended December 31, Year 2 Revenue Service revenue$65,200 Total revenue$65,200 Expenses Other operating expenses$41,000 Supplies expense1,100 Rent expense2,500 Insurance expense2,100 Total expenses(46,700) Net income$18,500

Use the accounts and balances from Barker Company to construct a statement of changes in stockholders' equity. BARKER COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock$40,000 Plus: Stock issued5,000 Ending common stock$45,000 Beginning retained earnings$9,300 Plus: Net income18,500 Less: Dividends3,000 Ending retained earnings24,800 Total stockholders' equity$69,800 Use the accounts and balances from Barker Company to construct a balance sheet. BARKER COMPANY Balance Sheet As of December 31, Year 2 Assets Cash$48,000 Accounts receivable14,200 Supplies1,000 Prepaid insurance1,200 Prepaid rent4800 Land24,000 Total assets$93,200 Liabilities Accounts payable$17,000 Unearned revenue6,400 Total liabilities$23,400 Stockholders' Equity Common stock45,000 Retained earnings24,800 Total stockholders' equity69,800 Total liabilities and stockholders' equity$93,200