Prepare a formal income statement, calculate the net income or loss for the year. Prepare a formal balance sheet. What amount of retained earnings would appear on the December 31, 2013 balance sheet?
Prepare a formal income statement, calculate the net income or loss for the year. Prepare a formal balance sheet. What amount of retained earnings would appear on the December 31, 2013 balance sheet?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
31.
The adjusted
Stevens Company Trial Balance December 31, 2013 |
||||
|
Debit |
Credit |
||
Cash |
$ 65,600 |
|
||
|
36,000 |
|
||
Inventory, January 1 |
147,000 |
|
||
Office supplies |
1,050 |
|
||
Prepaid rent |
1,350 |
|
||
Equipment |
52,500 |
|
||
|
|
$ 18,000 |
||
Accounts payable |
|
29,100 |
||
Common stock |
|
51,000 |
||
|
|
174,500 |
||
Sales |
|
406,500 |
||
Sales returns and allowances |
13,000 |
|
||
Purchases |
275,000 |
|
||
Purchases returns and allowances |
|
2,400 |
||
Freight in |
7,650 |
|
||
Supplies expense |
1,800 |
|
||
Rent expense |
18,750 |
|
||
Salaries expense |
61,800 |
|
||
|
|
$681,500 |
|
$681,500 |
Inventory on December 31, 2013, was $153,000.
- Prepare a formal income statement, calculate the net income or loss for the year.
- Prepare a formal
balance sheet . - What amount of retained earnings would appear on the December 31, 2013 balance sheet?
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