Financial statements are a complete record of the financial transactions that takes place in a company at a particular point of time. It provides important financial information like assets, liabilities, revenues and expenses of the company to its internal and external users. It helps them to know the exact financial position of the company. There are four basic financial statements as shown in the figure below: Basic Financial Statements Figure (1) To Prepare: Income statement and Retained earnings statement for the year ending December 31, 2017.

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Chapter 1, Problem 1.4E

To determine

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Financial statements are a complete record of the financial transactions that takes place in a company at a particular point of time. It provides important financial information like assets, liabilities, revenues and expenses of the company to its internal and external users. It helps them to know the exact financial position of the company. There are four basic financial statements as shown in the figure below:

Basic Financial Statements

Figure (1)

To Prepare: Income statement and Retained earnings statement for the year ending December 31, 2017.

To determine

To Prepare: Retained earnings statement for the year ending December 31, 2017.

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