Landscaping, Inc. Income Statement as On 31-Dec-2014Landscaping, Inc. Income Statement

Date: 31-12-2014

Revenue2012

Land Scaping Revenue Earned 340,000

Total Revenues 340,000

Expenses

Insurance 4,800

Office rent 72,000

Supplies expense 10,400

Salary Expense 120,000

Depreciation Expense - Trucks 60,000

Depreciation Expense - Levelling Equipment 8,000

Repair and Maintenance Expenses 6,000

Fuel Expense 3,000

Misc. Expenses 10,000

Interest Expense 6,000

Total Expenses 300,200

Net Income Before Taxes 39,800

Income tax expense 12,000

Income from Continuing Operations 27,800

{42}

Below-the-Line Items

Income from discontinued operations

Effect of accounting changes

Extraordinary items

Net Income 27,800

Retained Earnings Statement as on Dec. 31 2014Landscaping, Inc. Retained Earnings

Date: 31-12-2014

Owner's Equity

Retained earnings 60,000

Add: Net Income 27,800

Less: Dividends (10,000)

Total 77,800

Balance Sheet as on December 31st 2014Landscaping, Inc. Balance Sheet

Date: 31-12-2014

Assets2014

Current Assets

Cash 117,050

Accounts receivable 9,600

Unex[ired Insurance 16,000

Prepaid Rent 6,000

Supplies (as Inventory) 2,150

Total current assets 150,800

Fixed (Long-Term) Assets

Trucks 300,000

(Less accumulated depreciation - trucks) (240,000)

Leveling Equipments 40,000

(Less accumulated depreciation - Leveling Equipments) (24,000)

Intangible assets

Total fixed assets 76,000

Total Assets 226,800

Liabilities and Owner's Equity

Current Liabilities

Accounts payable 3,000

Salaries Payable 1,800

Income taxes payable 2,100

Interest payable 300

Unearned Landscaping revenue 1,800

Total current liabilities 9,000

Long-Term Liabilities

Notes Payable 100,000

Total long-term liabilities 100,000

Owner's Equity

Capital Stock 40,000

Retained earnings 60,000

Add: Net Income 27,800

Less: Dividends (10,000)

Total owner's equity 117,800

Total Liabilities and Owner's Equity 226,800

Falcon Repairs Income Statement as on Dec. 31 2014 Falcon Repairs Income Statement

Date: 31-12-2014

Revenue2012

Repair fees earned 79,750

Total Revenues 79,750

Expenses

Depreciation Expense - Equipment 4,000

Wages Expense 36,500

Insurance Expense 700

Rent Expense 9,600

Office Supplies Expense 2,600

Utilities Expense 1,700

Total Expenses 55,100

Net Income Before Taxes 24,650

Income tax expense -

Income from Continuing Operations 24,650

{42}

Below-the-Line Items

Income from discontinued operations

Effect of accounting changes

Extraordinary items

Net Income 24,650

Retained Earnings Statement as on Dec. 31 2014

Falcon RepairsRetained Earnings

Date: 31-12-2014

Owner's Equity

Retained earnings 30,000

Add: Net Income 24,650

Less: Dividends (15,000)

Total 39,650

Balance Sheet as on Dec. 31 2014 Falcon RepairsBalance Sheet

Date: 31-12-2014

Assets2014

Current Assets

Cash 13,000

Accounts receivable 6,000

Office Supplies 1,200

Prepaid Insurance 1,950

Total current assets 22,150

Fixed (Long-Term) Assets

Equipment 48,000

(Less accumulated depreciation - Equipment) (8,000)

Total fixed assets 40,000

Total Assets 62,150

Liabilities and Owner's Equity

Current Liabilities

Accounts payable 12,000

Wages Payable 500

Total current liabilities 12,500

Long-Term Liabilities

Notes Payable -

Total long-term liabilities -

Owner's Equity

Capital Stock 10,000

Retained earnings 30,000

Add: Net Income 24,650

Less: Dividends (15,000)

Total owner's equity 49,650

Total Liabilities and Owner's Equity 62,150