SKYMASTER AIRPLANE RENTALSIncome Statement

For the Year Ended December 31, 2011

Revenues $ 217,000.00 Expenses

Insurance expense $ 2,000.00 Wages expense 75,000.00 Advertising expense 22,000.00 Maintenance expense 39,000.00 Total expenses $ 138,000.00 Net Income $ 79,000.00

SKYMASTER AIRPLANE RENTALSStatement of Retained Earnings

For the Year Ended December 31, 2011

Retained earnings, beginning (12/31/2010) $ 130,000.00 Add: Net Income 79,000.00 Less Dividends 52,000.00 Retained earnings, end $ 157,000.00

SKYMASTER AIRPLANE RENTALSBalance Sheet

For the Year Ended December 31, 2011

AssetsCash $ 11,000.00 Accounts receivable 24,000.00 Airplane 150,000.00 Hangar 60,000.00 Office furniture 15,000.00

Total Assets $ 260,000.00

Liabilities and EquityAccounts payable $ 36,000.00 Notes payable 47,000.00 Total Liabilities $ 83,000.00

Common Stock 20,000.00 Retained Earnings 157,000.00 Total Equity $ 177,000.00 Total Liabilities and Equity $ 260,000.00

Type of Account Normal BalanceAsset Liability Equity Debit Credit

A. x xB. x xC. x xD. x xE. x xF. x xG. x xH. x xI. x xJ. x x

Debit Credita. Cash 10,000

Computer Equipment 15,00025,000

b. 500500

c. Cash 1,0001,000

d. 200200

e. 2,0002,000

Dolly Barton, Capital

Prepaid Insurance Cash

Service Revenue

Office Supplies Cash

Rent Expense Cash

a. Insurance expense 195.00 Prepaid Insurance 195.00

b. Office supplies expense 320.00 Office supplies 320.00

c. Rent earned 500.00 Unearned rent 500.00

d. Depreciation expense-office equipment 600.00 Accumulated depreciation - office eqpt 600.00

e. Salaries expense 400.00 Salaries payable 400.00

Debit Credit Dec. 31 Service Revenue 21,720.00

Income Summary 21,720.00

Income Summary 12,270.00 Salaries expense 6,920.00 Depreciation expense 2,000.00 Rent expense 1,200.00 Supplies expense 800.00 Utilities expense 950.00 Insurance expense 400.00

Income Summary 9,450.00 Sara Pollis, Capital 9,450.00

Sara Pollis, Capital 4,800.00 Sara Pollis, Withdrawals 4,800.00