Question

2.)   Produce the adjusted trial balance in the empty columns below. Add any additional accounts at the bottom (10 points).

   Debits   Credits   Debits   Credits  
Cash   $150,000  
Accounts Receivable   21,200
Supplies   24,000
Prepaid Advertising   6,000
Investments in Bonds   40,000
Equipment   120,000
Accumulated Depreciation       8,000
Accounts Payable       40,000
Common Stock       152,400
Retained Earnings       212,800
Dividends   54,000
Sales Revenue       38,000      
Utilities Expense   16,000
Salaries Expense   20,000
  

Total   $451,200   $451,200

3.)   Please compute the following:

a.) Net Income (2 points):

Answer 1

Solution:
	Net Income Calculation:
	Sales Revenue	$38,000
	Utilities Expense	($16,000)
	Salaries Expense	($20,000)
	Net Income	$2,000
	Note : Just for better understanding
	Ending balance of retained earnings
	Beginning balance of retained earnings	$212,800
	Add: Net Income	$2,000
	Less : Dividends	$54,000
	Ending balance of retained earnings	$160,800
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