Question

Show Me How Calculato Print Item Balance sheets, net income Balance Sheet, February 29, 2016 Instructions Financial information related to Ebony Interiors for February and March 2016 is as follows: February 29, 2016 March 31, 2016 Cash Accounts receivable Supplies Accounts payable Common stock Retained earnings $332,000 790,000 29,000 322,000 200,000 $382,000 956,000 31,000 382,000 200,000 Required: 1. Prepare balance sheets for Ebony interiors as of February 29 and March 3, 2016 Refer to the lists of Accounts Labels, and Amount Desciptions for the exact wording of the answer choices for text entries Be sure to compiete the statement heading 2. Determine the amount of net income for March, assuming that no additional common stock was issued and no dvidends month the amount of net income for March, assuming that no additional common stock was issued but dividends of $40,000 were paid during the month Previous Check My Work 2 more Check My Work uses rema ning

Answer 1

1)Balance sheet as on 29th February 2016 :

Assets	$	Liabilities	$
Cash	332000	Accounts payable	322000
Accounts receivable	790000	Common Stock	200000
Supplies	29000	Retained earnings	629,000	=Total assets - Accounts payable - Common Stock =1151000-322000-200000 =629000
Total assets	1,151,000	Total liabilities and owners equity	1,151,000

Balance sheet as on 31st March 2016

Assets	$	Liabilities	$
Cash	382000	Accounts payable	382000
Accounts receivable	956000	Common Stock	200000
Supplies	31000
		Retained earnings	787,000	Total assets - Accounts payable - Common Stock =787,000
Total assets	1,369,000	Total liabilities and owners equity	1369000

2)

Retained earnings as on 31st March 2016	787,000
Less : Retained earnings as on 29th February 2016	(629000)
Net income	158,000

3)

Retained earnings as on 31st March 2016	787000
Less : Retained earnings as on 29th February 2016	(629000)
Add:Dividend Paid	40000
Net income	198,000