Question

Required Information The following Information applies to the questions displayed below The following Information for the year ended December 31, 2016, was reported by Nice Blte, Inc. Accounts Payable Accounts Receivable S56,88e 33,880 186,488 89,000 135, 500 Cash (balance on January 1, 2816) Cash (balance on December 31, 2816) Cormon Stock Dividends Equipnent Income Tax Expense Interest Expense Inventory Notes Payable Prepaid Rent Office Expense Retained Earnings (beginning) Salaries and Hages Expense Service Revenue utilities Expense Salaries and Hages Payable 147,700 11, 288 зе,68e 18,388 35,889 8,189 15,499 11see 36.88e 159, 880 26, 288 19,899 , Other cash flow information: Cash from issuing common stock Cash paid to reacquire comnon stock Cash paid for incone taxes Cash paid to purchase long-tern assets Cash paid to suppliers and employees Cash received fron customers 32,689 36,500 12,190 63,488 96,488 159,639 2 Prepare a statement of retalned earnings for 2016. Statement of Retained Retained Earnings, January 1, 2016 Retained Earnings, Decemeber 31, 2016

Answer 1

Requirement 2

Statement of Retained Earnings
for the year ended 31 Dec 2016
Retained earnings, Jan 1 2016	$11,800
Add: Net Income [see working below]	$39,600
Retained earnings, Dec 31 2016	$51,400

--Working: Net Income calculation

Service revenue	$159,800
Expenses:
Income tax expense	$11,200
Interest expense	$30,600
Office expenses	$15,400
Salaries & Wages expenses	$36,800
Utilities expenses	$26,200
Total expenses	$120,200
Net Income	$39,600