Question - Prepare Financial Statements
The adjusted trial balance of Cavamanlis Co. as of December 31, 2010, contains the following.
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CAVAMANLIS CO. Adjusted Trial balance December 31, 2010
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Account Titles
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Dr.
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Cr.
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Cash
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$18,972
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Account receivable
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6,920
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Prepaid rent
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2,280
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Equipment
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18,050
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Accumulated Depreciation
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$4,895
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Notes payable
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5,700
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Accounts payable
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4,472
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Common stock
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20,000
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Retained earnings
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11,310
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Dividends
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3,000
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Service revenue
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12,590
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Salaries expense
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6,840
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Rent expense
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2,760
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Depreciation expense
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145
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Interest expense
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83
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Interest payable
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83
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$59,050
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$59,050
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Instructions:
(a) Prepare an income statement.
(b) Prepare a statement of retained earnings.
(c) Prepare a classified balance sheet.