Chapter 4, Problem 4.35BP

1

To determine

Financial statement

A financial statement is the complete record of financial transactions that take 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; they are:

• Balance Sheet

• Income statement

• Statement of retained earnings

• Statement of cash flows

To Prepare: An income statement for the year ended June 30, 2018.

2

To determine

To Prepare: The statement of retained earnings for the year ended June 30, 2018.

3

To determine

To Prepare: The Company’s classified balance sheet at June 30, 2018.

 4

To determine

To Prepare: The closing entries for R Real Estate.

5

To determine

To Prepare: T-accounts and post the closing entries to the T-accounts

6

To determine

To Prepare: The post-closing trial balance at June 30, 2018.