Net Income (or Loss) and Retained Eamings The following information is available from the records of Prestige Landscape Design Inc. at the end Accounts payable $5,000 Landscaping revenues $22,000 Accounts receivable 4,500 Office equipment 7,500 Capital stock 8,000 Rent expense 6,500 Cash 10,000 Retained earnings, beginning of year 8,500 Dividends paid during the year 3,000 Salary and wage expense 12,000 Required: Use the above information to answer the following questions. 1. What is Prestige's net income for the year? 2. What is Prestige's Retained Earnings balance at the end of the year? 3. What Is the total amount of Prestige's assets at the end of the year? 4. What is the total amount of Prestige's liabilidles at the end of the year? 5. How much owners' equity does Prestige's have at the end of the year? 6. What is Prestige's accounting equation at the end of tHe year? Assets Liabilities Stockholders' Equity %3D %3D %24
Net Income (or Loss) and Retained Eamings The following information is available from the records of Prestige Landscape Design Inc. at the end Accounts payable $5,000 Landscaping revenues $22,000 Accounts receivable 4,500 Office equipment 7,500 Capital stock 8,000 Rent expense 6,500 Cash 10,000 Retained earnings, beginning of year 8,500 Dividends paid during the year 3,000 Salary and wage expense 12,000 Required: Use the above information to answer the following questions. 1. What is Prestige's net income for the year? 2. What is Prestige's Retained Earnings balance at the end of the year? 3. What Is the total amount of Prestige's assets at the end of the year? 4. What is the total amount of Prestige's liabilidles at the end of the year? 5. How much owners' equity does Prestige's have at the end of the year? 6. What is Prestige's accounting equation at the end of tHe year? Assets Liabilities Stockholders' Equity %3D %3D %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Net Income (or Loss) and Retained Eamings
The following information is available from the records of Prestige Landscape Design Inc. at the end of
Accounts payable
$5,000 Landscaping revenues
$22,000
Accounts receivable
4,500
Office equipment
7,500
Capital stock
8,000
Rent expense
6,500
Cash
10,000
Retained earnings, beginning of year
8,500
Dividends paid during the year
3,000
Salary and wage expense
12,000
Required:
Use the above information to answer the following questions.
1. What is Prestige's net income for the year?
2. What is Prestige's Retained Earnings balance at the end of the year?
3. What Is the total amount of Prestige's assets at the end of the year?
4. What is the total amount of Prestige's liabilides at the end of the year?
5. How much owners equity does Prestige's have at the end of the year?
6. What is Prestige's accounting equation at the end of tHe year?
Assets
Liabilities
Stockholders Equity
%3D
%3D
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Financial Statements are prepared by the management for reporting purposes. These are the essential books of records that include income statements, balance sheets, and cash flow statements. Financial statements are useful for the stakeholders of the firm as they can analyze the current situation that the firm is able to meet out their obligation or not.
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