Question

Company reported the following account balances
at December 31, 2026:

Utilities Expense           $33,000
Inventory                   $47,000
Unearned Revenue            $35,000
Retained Earnings           $52,000 (at January 1, 2026)
Income Tax Expense          $24,000
Accounts Payable            $51,000
Cost of Goods Sold          $38,000
Cash                        $21,000
Utilities Payable           $19,000
Common Stock                $71,000
Building                    $74,000
Service Revenue             $55,000
Accounts Receivable         $69,000
Equipment                   $61,000
Sales Revenue               $96,000
Dividends                   $17,000
Patent                      $42,000
Notes Payable               $88,000
Loss on Sale of Land        $26,000 
Supplies                    $15,000

Calculate : gross profit reported by 
Company in its 2026 income statement.

total current assets reported by TY-9c Company at
December 31, 2026

The retained earnings balance at December 31, 2026

Answer 1

Ans. 1 Gross profit is equal to the difference between sales revenue and cost of goods sold. Gross profit Sales revenue - Cost of goods sold $96,000 - $38,000 $58,000 Ans. 2 Assets Current assets: Cash Accounts receivable Inventory Supplies Total current assets $21,000 $69,000 $47,000 $15,000 $152,000 Ans. 3 TY - 9c Company Retained Earnings Statement For the Year Ended December 31 2026 Particulars Amount Beginning balance of Retained earnings $52,000 Add: Net income $30,000 Less: Dividends ($17,000) Ending balance of Retained earnings $65,000 *Calculations for Net income: Amount Amount $96,000 $55,000 $151,000 Particulars Revenues: Sales revenue Service revenue Total revenue (a) Less: Expenses and losses: Cost of goods sold Utilities expense Loss on sale of land Income tax expense Total expenses (b) Net Income (a - b) $38,000 $33,000 $26,000 $24,000 $121,000 $30,000