Question

Required a. Prepare closing entries directly to Retained Earnings in general journal form. b. After the closing entries are posted, what is the ending balance in the Retained Earnings account? c. Prepare a post-closing trial balance. A.)Balance Sheet and Net Income At the beginning of 2015, Flynn's Parking Lots had the following balance sheet: Liabilities Accounts payable... $12,000 Assets Cash... Accounts receivable. Land.. $ 4,800 14,700 67,000 Stockholders' Equity Common stock. .. Retained earnings Total Liabilities and Stockholders' Equity... 27,000 47,500 Total Assets $86,500 $86,500 a. At the end of 2015, Flynn had the following assets and liabilities: Cash, $9,800; Accounts Re- ceivable, $17,400; Land, $67,000; and Accounts Payable, $7,500; and Common Stock, $27,000. Prepare a year-end balance sheet for Flynn's Parking Lots. b. Assume that stockholders did not invest any money in the business during the year but received $10,000 as a dividend; what was Flynn's net income or net loss for 2015? Determination of Retained Earnings and Net Income The following information appears in the records of Bock Corporation at the end of 2015:

Answer 1

a.	Balance Sheet
	At End of 2015
	Assets	Amount $	Liabilities	Amount $
	Cash	9,800	Accounts Payable	7,500
	Accounts receivable	17,400
	Land	67,000	Stockholder's Equity
			Common Stock	27,000
			Retained earnings ( Balancing Figure )	59,700
	Total Assets	94,200	Total Liabilities & Stockholder's Equity	94,200
b.	Net Income for 2015	$ 22,200	=59700+10000-47500