Question

Required Information Reporting Amounts on the Four Basic Financial Statements and Evaluating Financial Statements [LO 1-2, LO 1-3] [The following information applies to the questions displayed below.] The following information for the year ended December 31, 2016, was reported by Nice Bite, Inc. $ 45,000 22.88 1e3, see 102,800 180, 500 Accounts Payable Accounts Receivable Cash (balance on January 1, 2016) Cash (balance on December 31, 2016) Common Stock Dividends Equipment Income Tax Expense Interest Expense Inventory Notes Payable Prepaid Rent Office Expense Retained Earnings (beginning) Salaries and Wages Expense Service Revenue Utilities Expense Salaries and Wages Payable 136,700 10,100 29,500 17.299 23,600 7.ee 14,300 6,300 35,700 137.899 25,190 8,000 Other cash flow information: Cash from issuing common stock Cash paid to reacquire common stock Cash paid for income taxes Cash paid to purchase long-term assets Cash paid to suppliers and employees Cash received from customers $21.99 23,500 11.09 41.000 83.299 137.000 PA1-3 Part 2 2. Prepare a statement of retained earnings for 2016.

Answer 1

Income statement

Service revenue	137,800
Expenses :
Office expense	-14,300
Salaries and wages expenses	-35,700
Utilities expense	-25,100
Interest expense	-29,500
Income tax expense	-10,100
Net income	$23,100

Statement of Retained earnings

Retained earnings, beginning	6,300
Net income	23,100
	29,400
Dividend	-0
Retained earning, ending	$29,400