You are the accountant for Kamal Fabricating, Inc. and you oversee the preparation of financial statements for the year just ended 6/30/2020. You have the following information from the company’s general ledger and other financial reports (all balances are end-of-year except for those noted otherwise): Cash $11,000 Common stock 8,000 Accounts receivable 7,000 Accounts payable 2,000 Cash dividends declared for the year 2,000 Additional paid-in capital 5,000 Prepaid insurance 5,000 Prior period adjustment, net of income taxes (2,000) Unearned revenue 4,000 Retained earnings, beginning of the year 7,000 Net income for the year 9,000 Prepare the company’s Statement of Retained Earnings. Kamal Fabricating, Inc.Statement of Retained EarningsYear Ended June 30, 2020 $Retained earnings, July 1, 2019 Prior period adjustment, net of income taxes $Adjusted retained earnings, July 1, 2019 Net income $fill in the blank 9 Cash dividends declared $Retained earnings, June 30, 2020
You are the accountant for Kamal Fabricating, Inc. and you oversee the preparation of financial statements for the year just ended 6/30/2020. You have the following information from the company’s general ledger and other financial reports (all balances are end-of-year except for those noted otherwise): Cash $11,000 Common stock 8,000 Accounts receivable 7,000 Accounts payable 2,000 Cash dividends declared for the year 2,000 Additional paid-in capital 5,000 Prepaid insurance 5,000 Prior period adjustment, net of income taxes (2,000) Unearned revenue 4,000 Retained earnings, beginning of the year 7,000 Net income for the year 9,000 Prepare the company’s Statement of Retained Earnings. Kamal Fabricating, Inc.Statement of Retained EarningsYear Ended June 30, 2020 $Retained earnings, July 1, 2019 Prior period adjustment, net of income taxes $Adjusted retained earnings, July 1, 2019 Net income $fill in the blank 9 Cash dividends declared $Retained earnings, June 30, 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are the accountant for Kamal Fabricating, Inc. and you oversee the preparation of financial statements for the year just ended 6/30/2020. You have the following information from the company’s general ledger and other financial reports (all balances are end-of-year except for those noted otherwise):
| Cash | $11,000 |
| Common stock | 8,000 |
| 7,000 | |
| Accounts payable | 2,000 |
| Cash dividends declared for the year | 2,000 |
| Additional paid-in capital | 5,000 |
| Prepaid insurance | 5,000 |
| Prior period adjustment, net of income taxes | (2,000) |
| Unearned revenue | 4,000 |
| 7,000 | |
| Net income for the year | 9,000 |
Prepare the company’s Statement of Retained Earnings.
Kamal Fabricating, Inc.Statement of Retained EarningsYear Ended June 30, 2020
|
|
$Retained earnings, July 1, 2019 |
|
|
Prior period adjustment, net of income taxes |
|
|
$Adjusted retained earnings, July 1, 2019 |
|
|
Net income |
| $fill in the blank 9 | |
|
|
Cash dividends declared |
|
|
$Retained earnings, June 30, 2020 |
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