13. Given the following information at year end after adjustments Sales Interest Revenue Interest Expense Cost of goods Soid Selling Expense General & Adm.Exp Retained Earnings Beg. Bal. 0 Assets – YE Common Stock YE $10,000 $1,000 $2,000 $4,500 $1,500 $2,800 0 $16,000 $1,000 A. Prepare and income statement for the year. B. Prepare a retained earnings statement for the year. C. What is the value of total liabilities at year end? D. Record closing entries E. Calculate – Total Debt/Stockholders’ Equity
Expert Answer
A | ||
Income Statement | ||
Sales | 10000 | |
Interest Revenue | 1000 | |
Total revenues | 11000 | |
Expenses: | ||
Cost of goods sold | 4500 | |
Selling expense | 1500 | |
General and Admin exp. | 2800 | |
Total expenses | 8800 | |
Net income | 2200 | |
B | ||
Retained earnings, Beg. Bal. | 0 | |
Add: Net income | 2200 | |
Retained earnings, End. Bal. | 2200 | |
C | ||
Total liabilities = 16000-1000-2200= | 12800 | |
D | ||
Sales | 10000 | |
Interest Revenue | 1000 | |
Income Summary | 11000 | |
Income Summary | 8800 | |
Cost of goods sold | 4500 | |
Selling expense | 1500 | |
General and Admin exp. | 2800 | |
Income Summary | 2200 | |
Retained earnings | 2200 | |
E | ||
Total debt/Stockholders’ equity = 12800/3200= | 4 |