Question

Assume you are the president of Nuclear Company. At the end of the first year of operations (December 31), the following financial data for the company are available:

Accounts Payable	$	49,000
Accounts Receivable		62,350
Cash		21,500
Common Stock		61,280
Dividends		390
Equipment		34,000
Notes Payable		1,660
Operating Expenses		79,000
Other Expenses		9,800
Sales Revenue		104,000
Supplies		8,900

Prepare an income statement for the year ended December 31.

Prepare a statement of retained earnings for the year ended December 31.

Prepare a balance sheet at December 31.

Answer 1

NUCLEAR COMPANY Income Statement For the Year Ended December 31 Sales Revenue Less: expensese Operating Expenses $ 79,000 Other Expenses $ 9,800 S 104,000 S $ 88,800 15,200 NUCLEAR COMPANY Reatained Earnings For the Year Ended December 31 Opening balance of Reatined Earnings s Add: Net Income $ Operating Expenses $ Less: Dividends S Closing balance of Reatined Earnings S 15.200 15,200 390 14,810

NUCLEAR COMPANY Balance Sheet At December 31 Assets Cash Accounts Receivables Equipment Supplies $ $ $ $ 21,500 62,350 34,000 8,900 Total Assets S 126,750 Liabilities Accounts Payable Notes Payable S S 49,000 1,660 S 50,660 Total Liabilities Stockholders' Equity Common Stock Retained Earnings S $ 61,280 14,810 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 76,090 S 126,750