As of December 31, Year 2, Moss Company had total cash of $151,000, notes payable of $85,100, and common stock of $51,900. During Year 3, Moss earned $31,000 of cash revenue, paid $17,500 for cash expenses, and paid a $2,500 cash dividend to the stockholders. Required a. Determine the amount of retained earnings as of December 31, Year 2. b. & c. Create an accounting equation and record the beginning account balances, revenue, expense, and dividend events under the appropriate headings of the accounting equation. d. Complete the equality of the accounting equation as of December 31, Year 3.

As of December 31, Year 2, Moss Company had total cash of $151,000, notes payable of $85,100, and common stock of $51,900. During Year 3, Moss earned $31,000 of cash revenue, paid $17,500 for cash expenses, and paid a $2,500 cash dividend to the stockholders. Required a. Determine the amount of retained earnings as of December 31, Year 2. b. & c. Create an accounting equation and record the beginning account balances, revenue, expense, and dividend events under the appropriate headings of the accounting equation. d. Complete the equality of the accounting equation as of December 31, Year 3.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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