Atlas, Inc. has the following assets, liabilities, revenues and expenses for the current year. The accounts are listed below in alphabetical order. The company has a December 31, 2014 year end. Accounts receivable $18,000                  Office equipment $59,500 Accounts payable        26,000                  Office supplies         5,000 Building                        35,000                  Service revenue 137,000 Cash                            90,000                  Supplies expense     8,000 Commission expense 20,500                  Utilities expense       7,500 Common stock            22,500                  Wage expense         8,500 Interest payable             1,500 Land 40,000 Beginning retained earnings was $110,000 and dividends were $5,000 for the year. Instructions Prepare the income statement, statement of retained earnings, and balance sheet for Atlas, Inc. for the current year. Solution Income Statement Service Revenue 137000 Commission Expense -20500 Office Supplies -5000 Supplies Expense -8000 Utility Expense -7500 Wage Expense -8500 Net Profit 87500 Statement of Retained Earnings Opening Retained earnings 110000 Net Profit 87500 Dividend -5000 Cl. Retained Earnings 192500 Balance Sheet Liabilities Retained Earnings 192500 Accounts Payable 26000 Interest Payable 1500 Assets Accounts Receivable 18000 Building 35000 Cash 90000 Equipment 59500 Land 40000 Common Stock 22500 .

1. Atlas, Inc. has the following assets, liabilities, revenues and expenses for the current year. The
accounts are listed below in alphabetical order. The company has a December 31, 2014 year end.
Accounts receivable $18,000 Office equipment $59,500
Accounts payable 26,000 Office supplies 5,000
Building 35,000 Service revenue 137,000
Cash 90,000 Supplies expense 8,000
Commission expense 20,500 Utilities expense 7,500
Common stock 22,500 Wage expense 8,500
Interest payable 1,500 Land 40,000
Beginning retained earnings was $110,000 and dividends were $5,000 for the year.
Instructions
Prepare the income statement, statement of retained earnings, and balance sheet for Atlas, Inc.
for the current year.
Solution
Income Statement Service Revenue 137000 Commission Expense -20500 Office Supplies -5000
Supplies Expense -8000 Utility Expense -7500 Wage Expense -8500 Net Profit 87500 Statement
of Retained Earnings Opening Retained earnings 110000 Net Profit 87500 Dividend -5000 Cl.
Retained Earnings 192500 Balance Sheet Liabilities Retained Earnings 192500 Accounts
Payable 26000 Interest Payable 1500 Assets Accounts Receivable 18000 Building 35000 Cash
90000 Equipment 59500 Land 40000 Common Stock 22500