Question
The Bryant Corporation was started during 2019. Since then some of its
accounting information was lost and although some that data is missing, a
comparative report of year-end account balances appears below. All numbers
are as of December 31st unless noted otherwise. Required: a. Prepare an income
statement, statement of retained earnings and a balance sheet for each year and
determine the missing values. 2023 2022 Retained earnings, Jan. 1 47,940
33,200 Accounts receivable 5,800 4,600 Supplies 390 430 Utility expense 4,320
3,840 Revenues 214,900 186,900 Equipment 99,420 72,910 Cash 9,300 16,200
Notes payable ? 18,700 Common stock 32,000 32,000 Supplies expense 530
460 Dividends 3,400 2,500 Advertising expense 6,400 5,600 Rent expense
18,200 ? Inventory 18,500 ? Payroll expense 50,100 43,500 Retained earnings,
Dec. 31 ? 47,940 Cost of goods sold 112,680 98,060 Accounts payable 9,600
8,400
Answer & Explanation
, To solve this problem, we need to prepare the financial statements for Bryant
Corporation for the years 2022 and 2023. We'll start with the income statement,
then move on to the statement of retained earnings, and finally prepare the
balance sheet.
Income Statement
For Year Ended December 31, 2022:
1. Revenues: $186,900
2. Expenses:
o Cost of Goods Sold: $98,060
o Utility Expense: $3,840
o Supplies Expense: $460
o Advertising Expense: $5,600
o Rent Expense (unknown): Let's denote it as ( R ).
o Payroll Expense: $43,500
Total Expenses = ( 98,060 + 3,840 + 460 + 5,600 + R + 43,500 )
The Bryant Corporation was started during 2019. Since then some of its
accounting information was lost and although some that data is missing, a
comparative report of year-end account balances appears below. All numbers
are as of December 31st unless noted otherwise. Required: a. Prepare an income
statement, statement of retained earnings and a balance sheet for each year and
determine the missing values. 2023 2022 Retained earnings, Jan. 1 47,940
33,200 Accounts receivable 5,800 4,600 Supplies 390 430 Utility expense 4,320
3,840 Revenues 214,900 186,900 Equipment 99,420 72,910 Cash 9,300 16,200
Notes payable ? 18,700 Common stock 32,000 32,000 Supplies expense 530
460 Dividends 3,400 2,500 Advertising expense 6,400 5,600 Rent expense
18,200 ? Inventory 18,500 ? Payroll expense 50,100 43,500 Retained earnings,
Dec. 31 ? 47,940 Cost of goods sold 112,680 98,060 Accounts payable 9,600
8,400
Answer & Explanation
, To solve this problem, we need to prepare the financial statements for Bryant
Corporation for the years 2022 and 2023. We'll start with the income statement,
then move on to the statement of retained earnings, and finally prepare the
balance sheet.
Income Statement
For Year Ended December 31, 2022:
1. Revenues: $186,900
2. Expenses:
o Cost of Goods Sold: $98,060
o Utility Expense: $3,840
o Supplies Expense: $460
o Advertising Expense: $5,600
o Rent Expense (unknown): Let's denote it as ( R ).
o Payroll Expense: $43,500
Total Expenses = ( 98,060 + 3,840 + 460 + 5,600 + R + 43,500 )
