Question

newconnect.mheducation.com Chapter 1 Homework Saved rk 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 Bite, Inc. Accounts Payable Accounts Receivable Cash (balance on January 1, 2016) Cash (balance on December 31, 2016) Common Stock Dividends Equipment Incone 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 $ 59,000 36,800 116,900 98,000 136,500 150,700 11,500 30,900 18,600 37,600 8,400 15,700 13,300 37,100 165,800 26,500 22,000 Other cash flow information Cash fron issuing common stock Cash paid to reacquire common stock Cash paid for income taxes Cash paid to purchase long-term assets Cash paid to auppliers and employees Cash received from eustonerS 35,000 40,100 12,400 66,400 100,000 165,000 Prepare a statement of retained earnings for 2016. K Prev 10 11 12 of 14 Next >

Answer 1

Nice Bite Inc. Statement of Retained Earnings Dec. 31, 2016 Retained Earnings, Beginning balance Add: Net Income $13,300 $44,100 [Ref: Workings] $57,400 Less: Dividends Retained Earnings, Ending balance $0 $57,400 Workings: Nice Bite Inc. Income Statement For the Year Ended Dec. 31, 2016 Service Revenue $165,800 Expenses: Income Tax Expense Interest Expense Office Expense Salaries and Wages Expense Utilities Expense Total Expenses $11,500 $30,900 $15,700 $37,100 $26,500 $121,700 Net Income for the year $44,100 [$165,800 - $121,700]