Problem 3-8B (connued)
Requirement 8
Pipers Plumbing
Income Statement
For the year ended December 31, 2015
Service revenue $92,000
Expenses:
Salaries 33,000
Utilities 6,000
Pipers Plumbing
Balance Sheet
December 31, 2015
Assets Liabilities
Cash $49,500 Accounts payable $ 6,000
Accounts receivable 21,500 Unearned revenue 3,000
Stockholders’ Equity
Equipment 36,000 Common stock 34,000
Accumulated depr. (16,000) Retained earnings 49,100 *
Total stockholders’ equity 83,100
Total liabilities and
* Retained earnings = Beginning retained earnings + Net income − Dividends