PA1-3 Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet [LO1-2]
(NOTE: Please remember to scroll all the way to the bottom to ensure you
answer all parts of this question) Assume that you are the owner/operator of
College Park Veterinary Clinic. At the end of the second year of operations (June
30, 2020), the following financial data for the company are available:
Cash
$ 6,000
Accounts Receivable
139,700
Supplies
38,000
Property and Equipment
231,200
Other Assets
14,800
Accounts Payable
59,900
Notes Payable
160,000
Other Liabilities
98,000
Sales Revenue
280,000
Operating Expenses
194,800
Selling and Administrative Expenses
46,200
Advertising and Marketing Expenses
23,400
Interest Expense
6,000
Retained Earnings, July 1, 2019
50,000
Contributed Capital
167,000
Dividends
23,000
Required:
1. Prepare an income statement for the year ended June 30, 2020. (Negative
amounts should be indicated by a minus sign.)
COLLEGE PARK VETERINARY CLINIC
Income Statement
For the Year Ended June 30, 2020
Total expenses
2. Prepare a statement of retained earnings for the year ended June 30, 2020.
(Negative amounts should be indicated by a minus sign.)
COLLEGE PARK VETERINARY CLINIC
Statement of Retained Earnings
For the Year Ended June 30, 2020
Retained earnings, July 1, 2019
Retained earnings, June 30, 2020
3. Prepare a balance sheet at June 30, 2020.
COLLEGE PARK VETERINARY CLINIC
Balance Sheet
At June 30, 2020
Assets
Total assets
Liabilities
Total liabilities
Shareholders' equity
Total shareholders' equity
Total liabilities and shareholders' equity
