Preparing financial statements and evaluating business performance Presented here are the accounts of ABC Corporation for the year ended December 31, 2023. Land$ 7,000Common stock$ 32,000Note payable30 000Accounts payable14 000Property tax expense2 900Accounts receivable1 700Dividends32 000Advertising expense17 000Rent expense13 000Building137 900Salary expense69 000Cash6 000Salary payable500Equipment17 000Service revenue192 000Insurance expense2 000Supplies8 000Interest expense6 000Retained earnings, 12/31/202251 000 Requirements 1. Prepare ABC Corporation’s income statement. 2. Prepare the statement of retained earnings. 3. Prepare the balance sheet. 4. Answer these questions about the company: a. Was the result of operations for the year a profit or a loss? How much? b. How much in total economic resources does the company have as it moves into the new year?c. How much does the company owe to creditors? d. What is the dollar amount of the stockholders’ equity in the business at the end of the year? Exercise 1.Preparing financial statements and evaluating business performancePresented here are the accounts of ABC Corporation for the year ended December 31, 2023.$ 7,000 Common stock30 000 Accounts payable2900 Accounts receivable32 000 Advertising expense13 000 Building69 000 CashLandNote payableProperty tax expenseDividendsRent expenseSalary expenseSalary payableService revenueSuppliesRetained earnings, 12/31/2022Requirements1.2.3.4.500 Equipment192 000 Insurance expense8 000 Interest expense51 000Prepare ABC Corporation's income statement.Prepare the statement of retained earnings.Prepare the balance sheet.Answer these questions about the company:a. Was the result of operations for the year a profit or a loss? How much?b. How much in total economic resources does the company have as it moves into the new year?c. How much does the company owe to creditors?d. What is the dollar amount of the stockholders' equity in the business at the end of the year?$ 32,00014 0001 70017 000137 9006 00017 0002 0006 000

Name: Preparing financial statements and evaluating business performance
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Description: Preparing financial statements and evaluating business performance Presented here are the accounts of ABC Corporation for the year ended December 31, 2023. Land$ 7,000Common stock$ 32,000Note payable30 000Accounts payable14 000Property t

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Century 21 Accounting Multicolumn Journal

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Author:Gilbertson

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Chapter22: End-of-fiscal-period Work For A Corporation

Section22.2: Preparing An Income Statement, Statement Of Stockholders’ Equity, And Balance Sheet

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Preparing financial statements and evaluating business performance

Presented here are the accounts of ABC Corporation for the year ended December 31, 2023.

Land	$ 7,000	Common stock	$ 32,000
Note payable	30 000	Accounts payable	14 000
Property tax expense	2 900	Accounts receivable	1 700
Dividends	32 000	Advertising expense	17 000
Rent expense	13 000	Building	137 900
Salary expense	69 000	Cash	6 000
Salary payable	500	Equipment	17 000
Service revenue	192 000	Insurance expense	2 000
Supplies	8 000	Interest expense	6 000
Retained earnings, 12/31/2022	51 000

Requirements
1. Prepare ABC Corporation’s income statement.
2. Prepare the statement of retained earnings.
3. Prepare the balance sheet.
4. Answer these questions about the company:
a. Was the result of operations for the year a profit or a loss? How much?
b. How much in total economic resources does the company have as it moves into the new year?
c. How much does the company owe to creditors?
d. What is the dollar amount of the stockholders’ equity in the business at the end of the year?

Exercise 1.
Preparing financial statements and evaluating business performance
Presented here are the accounts of ABC Corporation for the year ended December 31, 2023.
$ 7,000 Common stock
30 000 Accounts payable
2900 Accounts receivable
32 000 Advertising expense
13 000 Building
69 000 Cash
Land
Note payable
Property tax expense
Dividends
Rent expense
Salary expense
Salary payable
Service revenue
Supplies
Retained earnings, 12/31/2022
Requirements
1.
2.
3.
4.
500 Equipment
192 000 Insurance expense
8 000 Interest expense
51 000
Prepare ABC Corporation's income statement.
Prepare the statement of retained earnings.
Prepare the balance sheet.
Answer these questions about the company:
a. Was the result of operations for the year a profit or a loss? How much?
b. How much in total economic resources does the company have as it moves into the new year?
c. How much does the company owe to creditors?
d. What is the dollar amount of the stockholders' equity in the business at the end of the year?
$ 32,000
14 000
1 700
17 000
137 900
6 000
17 000
2 000
6 000

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Presented here are the accounts of ABC Corporation for the year ended December 31, 2023. Land $ 7,000 Common stock $ 32,000 Note payable 30 000 Accounts payable 14 000