Identify the retained earnings balance at the end of the year.

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Chapter 13, Problem 7PEB

To determine

Identify the retained earnings balance at the end of the year.

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Exercise 1-24 (Algo) Linking the statement of retained earnings and balance sheet LO P2 Mahomes Co. reported the following data at the end of its first year of operations on December 31. Cash $ 9,000 10,000 Accounts receivable Equipment 12,000 Land 43,000 Accounts payable 6,000 Common stock 30,000 Dividends 25,000 Net income 63,000 (a) Prepare its year-end statement of retained earnings. (b) Prepare its year-end balance sheet, using retained earnings calculated in part a.

udCountimIg 3y3tem.) Feb 01 Take $4,000 cash out of Big Bank to pay for February's warehouse rent. Sale of inventory to a customer – selling price $62,000 – cost of inventory sold $16,000 – customer paid cash which was deposited in Big Bank. Feb 04 Feb 07 Take $10,000 cash out of Little Bank to pay employees for wages they have earned. Sale of inventory to a customer – selling price $88,000 – cost of inventory sold $22,000 – customer will pay in the future. Feb 15 Feb 18 Sale of inventory to a customer – selling price $110,000 – cost of inventory sold $28,000 – customer pays $40,000 cash which is deposited in Little Bank – customer will pay for the remaining amount of the sale in 30 days. Feb 22 Purchase additional inventory - pay $17,000 cash out of Big Bank for the inventory. Feb 27 Take $23,000 cash out of Little Bank to pay employees for wages they have earned. Adjust the Interest Payable-Big Bank account to record the $600 of interest owed to Big Bank for February – interest will…

A comparative retained earnings statement for Marshall Inc., for the years ended December 31, 20Y2 and 20Y1, is shown. The following two column headings are shown: 20Y2 and 20Y1. For Retained earnings, January 1, the following amounts are listed: 20Y2, $3,704,000; 20Y1, $3,264,000. A single rule appears below $3,704,000 and $3,264,000. For Net income, the following amounts are listed: 20Y2, 600,000; 20Y1, 550,000. Under Dividends:, the amounts for On preferred stock and On common stock are shown on two lines. For On preferred stock, the following amounts are listed: 20Y2, (10,000) set in parentheses; 20Y1, (10,000) set in parentheses. For On common stock, the following amounts are listed: 20Y2, (100,000) set in parentheses; 20Y1, (100,000) set in parentheses. A single rule appears below (100,000) set in parentheses and below (100,000) set in parentheses. For Increase in retained earnings, the following amounts are listed: 20Y2, $490,000; 20Y1, $440,000. A single rule appears below…