Question

A Account totals $ CA Land $ 12 500 8.000 2.000 Note payable Property tax expense Rent expense Accounts receivable 8.200 Equipment 32,500 Interest expense 2.350 Interest payable 16.500 Accounts payable 26.000 Salary expense 156.000 Building 1.800 Cash 15,500 43.500 126 500 Service revenue N 11.000 Supplies Utilities expense 3.600|| Common shares 20.000 Beginning retained earnings were $67 950, and dividends totalled $34,000 for the year: Print Done

Answer 1

Income Statement

Service revenue		156,000
Operating Expenses :
Property tax expense	2,350
Rent Expense	16,500
Utilities Expense	3,600
Salaries expense	43,500
Less: Total Operating Expenses		65,950
Operating Profit		90,050
Less: Non Operating Expense:
Interest Expense		8,000
Net Profit		82,050

Statement of retained Earnings

Beginning balance of retained earnings	67,950
Add: Net Income	82,050
Sub Total =	150,000
Less: Dividends	34,000
Ending balance of retained earnings	116,000

Balance Sheet

Assets :		Liabilities and shareholder's equity
Cash	11,000	Interest Payable	2,000
Accounts Receivable	26,000	Accounts Payable	15,500
Supplies	1,800	Note Payable	32,500
Equipment	12,500	Total liabilities	50,000
Building	126,500	Shareholder's equity :
Land	8,200	Common Shares	20,000
		Ending balance of retained earnings	116,000
		Total shareholder's equity	136,000
Total Assets	186,000	Total liabilities and shareholder's equity	186,000

A) Monroe services was profitable with a net profit of $ 82,050

B) Retained earnings increase by $ 48,050 after paying dividend to shareholders of $ 34,000.

(Note , increase in retained earnings = $ 116,000 $ 67950 = $ 48,050)

C) Shareholders exceeds creditors by $ 86,000. Shareholders own more service assets.

(Note shareholders claim = 136,000 and creditors claim = $ 50,000)

D) Yes, be pleased with a result of Monroe service because the company earned a Net profit.