Question

https://newconnect.mheducation.com/llow/cole ignment Required information Use the following information for the Quick Study below. A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash $ 94,800 $ 24,00 Accounts receivable, net 41,000 51,00 Inventory 85,880 95, see Prepaid expenses 5,400 4,200 Total current assets 227.000 175, eee Furniture 109,bee 119, eee Accum. depreciation-Furniture (17,880) (9.800) Total assets $319,000 $285,000 Liabilities and Equity Accounts payable $ 15,00 $ 21, eee Wages payable 9,0005 , eee Income taxes payable 1,400 2,6ee Total current liabilities 25,400 28,660 Notes payable (long-term) 29,eee 69.000 Total liabilities 54,400 97,680 Equity Common stock, $5 par value 229,000 179,000 Retained earnings 35,600 8,400 Total liabilities and equity $319,000 $285,000 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $488, eee Cost of goods sold 314,000 Gross profit 174,000 Operating expenses Depreciation expense $37,689 Other expenses 89,189 126,700 Income before taxes 47,300 Income taxes expense 17,3ee Net income $ 38,eee

Answer 1

	Retained Earnings
	Debit	Credit
Beg. Bal		$ 8400
		$ 30000	Income Summary (Net income)
Cash Dividend	$ 2800
End Bal	$ 35600

Dividend = Beginning Balance of Retained Earnings + Net income - Ending Balance of Retained Earnings
= $8400 + $30000 - $35600 = $2800

	Notes Payable
	Debit	Credit
Beg. Bal		$ 69000
Cash	$ 40000
End Bal	$ 29000