Financial Statement Preparation

ACCT 2010

FALL 2014- Chapter 1

THE PREPARATION OF FINANCIAL STATEMENTS

Due: _________

Lake Corporation finished its 4th year of operations on 12/31/2013. At the

beginning of the year (January 1, 2013), Lake Corporation had a Retained Earnings

Balance of $22,500. During 2013, Lake Corporation paid $5,000 in dividends.

In addition, the following balances existed for Lake Company at the end of the year of

2013 (December 31, 2013):

Service Revenue $29,000 Land $101,500

Cash 3,500 Advertising Expense 500

Rent Expense 6,000 Salaries Expense 11,000

Supplies 100 Accounts Payable 1,000

Consulting Revenue 3,600 Wages Payable 1,500

Common Stock 80,000 Accounts Receivable 10,000

Required: Use the above information to prepare:

(1)An Income Statement (2) A Statement of Owner’s Equity (3) A Balance Sheet for Lake Corporation for the year of 2013.

You can prepare these statements “by hand” (please write neatly) or

prepare them using WORD or EXCEL (must print your work to submit in

class).

NOTE: Use proper headings on all statements and label all #’s.

Use Page 214 from the text as a model for your set of statements.

Late work is not accepted. If you cannot submit your work in class on the

due date, you can email your work as an attachment PRIOR to the start of

class on the due date.