Question

E1-5 Completing a Balance Sheet and Inferring Net Income LO1-1 5,200 shares of common from sales of unused portion of $80,000 December 31, current year amounts owed to publishers for books purchased, $12,100, o ne-year note payabile to a local bank for $3,400, with interest due of $170. No dividends were declared or paid to the stockholders during the year

Answer 1

Balance Sheet
Assets				Liabilities and Stockholder's equity:
Cash			69850	Accounts payable			12100
Accounts receivable			40000	Notes payable			3400
Stores and Equipment			80000	Interest payable			170
				Total Liabilities			15670
				Stockholder's equity:
				Common Stock			140600
				Retained earnings			33580
				(Balancing figure)
Total assets			189850	Total Liabilities and Stockholder's equitty			189850
Note:
Total assets			189850
Less: Total liabilities			15670
Total Stockholder's equity			174180
Less: Common Stock			140600
Retained earnings balance			33580
Net Income:
Ending balance of Retained earnings				33580
Add: Dividend				0
Total				33580
Less: Beginning balance of RE				0
Net Income:				33580
Hence, Net Income is equal to $ 33580