Question

i need help and explanation

Required information A comparative balance sheet and income statement is shown for Cruz, Inc. 2016 CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 Assets Cash $ 82,800 Accounts receivable, net 35,500 Inventory 74,300 Prepaid expenses 4,600 Total current assets 197,200 Furniture 92,800 Accum. depreciation-Furniture (14,400) Total assets $275,600 Liabilities and Equity Accounts payable $ 13,000 Wages payable 7,700 Income taxes payable 1,300 Total current liabilities 22,000 Notes payable (long-term) 26,800 Total liabilities 48,800 Equity Common stock, $5 par value 198,800 Retained earnings 28,000 Total liabilities and equity $275,600 $ 20,600 43,700 82,000 3,700 150,000 104,800 (8,000) $ 246,800 $ 18,200 4,300 2,400 24,900 63,700 88,600 155,300 2,900 $246,800 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $ 422,500 Cost of goods sold 271,900 Gross profit 150,600 Operating expenses Depreciation expense $32,500 Other expenses 77,100 109,600 Income before taxes 41,000 Income taxes expense 14,900 Net income $ 26,100

Answer 1

Solution 1:

Retained Earnings
Particulars	Debit	Credit	Particulars
Dividend Paid	$1,000.00	$2,900.00	Beg bal
		$26,100.00	Net Income
		$28,000.00	End Bal

Solution 2:

Notes Payable
Particulars	Debit	Credit	Particulars
Cash paid	$36,900.00	$63,700.00	Beg bal
		$26,800.00	End Bal