94: The following comparable balance sheet for Ibrahim Stores forthe year ended Dec.31, 2012:AccountsCashNotes receivableAccounts receivableInventoryPrepaid expensesShort term investmentBuilding & Equipment (netTotal AssetsAccounts payableInterest payableExpenses payableBonds payableCapitalRetained earning.Total liabilities & owners' equityDec. 31, 201284,500 S21,00095,000Jan.1, 201233,00020,00074,000150,00010,00010,000120,000490,5 00160,00012,00040,000100,000439,000135,000133,0009003,0002,00050,000200,00052,000280,00073,600490,500439.000 /An analysis of cash receipts and disbursements discloses the following:ReceiptsNew capital investmentDisbursementTrade creditor -Accounts Pay.Expenses80,000 S210,000 $Trae debtors - Notes and230,00070,000accounts65,000N/R discounted – Face value i 19,500Cash salesDividendsEquipment40,00028,0002000010% Note issued to bankdated March 31, 2012Sales of investment30,000Bonds50,00025,000Required:1) Prepare an income statement supported by schedules showingcomputation of revenue and expenses for the year ended in Dec. 31,2012.2) Prepare the retained earnings statement for the year ended in Dec. 31,2012.

Income Statement The purpose of preparing the income statement is to know the net income which was…

Trae debtors -Notes and 230,000 Expenses 70,000 accounts 65,000 Cash sales N/R discounted- Face value i 19,500 Dividends Equipment 40,000 28,000 20000 10% Note issued to bank dated March 31, 2012 Sales of investment 30,000 Bonds 50,000 25,000 Required: 1) Prepare an income statement supported by schedules showing computation of revenue and expenses for the year ended in Dec. 31, 2012. 2) Prepare the retained earnings statement for the year ended in Dec. 31, 2012.

Trae debtors -Notes and 230,000 Expenses 70,000 accounts 65,000 Cash sales N/R discounted- Face value i 19,500 Dividends Equipment 40,000 28,000 20000 10% Note issued to bank dated March 31, 2012 Sales of investment 30,000 Bonds 50,000 25,000 Required: 1) Prepare an income statement supported by schedules showing computation of revenue and expenses for the year ended in Dec. 31, 2012. 2) Prepare the retained earnings statement for the year ended in Dec. 31, 2012.

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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