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The preparation of the financial statements of Stark Company is as follows:
1) Stark Company
For the year ended December 31
Services revenue $20,000
Interest expense 500
Wages expense 7,500
Depreciation expense 2,000
Insurance expense 1,800
Utilities expense 1,300
Supplies expense 200 $13,300
Net income $6,700
2) Stark Company
For the year ended December 31
Stark, Capital $24,800
Stark, Withdrawals (3,000)
Net Income 6,700
Stark, Capital $28,500
3) Stark Company
At December 31
Assets
Cash $10,000
Accounts receivable 4,000
Supplies 800
Prepaid insurance 2,500
Buildings 40,000
Accumulated depreciation 15,000 $25,000
Total assets $42,300
Liabilities and Equity:
Accounts payable $1,500
Wages payable 400
Unearned revenue 800
Interest payable 100
Total current liabilities $2,800
Notes payable $ 11,000
Total liabilities $13,800
Stark, Capital $28,500
Total liabilities and Capital $42,300
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Accounts payable 1,500
Wages payable 400
Unearned revenue 800
Interest payable 100
Notes payable $ 11,000
Stark, Capital 24,800
Stark, Withdrawals 3,000
Cash 10,000
Accounts receivable 4,000
Supplies 800
Prepaid insurance 2,500
Buildings 40,000
Accumulated depreciation-Buildings $ 15,000
Services revenue 20,000
Interest expense 500
Wages expense 7,500
Depreciation expense-Buildings 2,000
Insurance expense 1,800
Utilities expense 1,300
Supplies expense 200