Chapter 1, Problem 1.14E

(a)

To determine

Net Income:

Net income is the profit or total earnings of a company. The value of the net income is obtained by deducting various expenses incurred in doing business, including depreciation, taxes, and interest from the revenues. The net income value appears on the income statement of a company and helps in assessing the profitability of a company over a particular period of time.

The net income of W. P. for the year 2019.

(b)

To determine

Balance Sheet:

Balance sheet is a financial statement that shows the available assets (owner’s equity and outsider’s equity) and owed liabilities from investing and financial activities of a company. This statement reveals the financial health of company. The main components of balance sheet are assets, liabilities, and stockholders’ equity.

To prepare: The balance sheet for W. P. as on December 31, 2019.