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