Question

For Questions 41-50, review the below information, prepare an Income Statement, Statement of Retained Earnings, and a Balance Sheet, and answer questions posed. On March 1, 2019, Bern Madeoff organized You Can Trust Me Tax Financial Solutions, Inc., a new firm. On March 31, 2019, the company’s records showed the following items and amounts: Cash $ 10,000 Cash Dividends $ 4,360 Accounts Receivable 6,000 Consulting Fees Earned 15,000 Courier Expense 1,000 Office Supplies 4,250 Rent Expense 2,550 Land 50,000 Salaries Expense 5,000 Office Equipment 14,000 Telephone Expense 660 Accounts Payable 3,500 Advertising Expense 680 Common Stock 80,000 Retained Earnings, March 1 0 NOTES: Beginning balance, March 1, 2019, Common Stock was $0. Bern owns 70% of the stock in You Can Trust Me Tax Financial Solutions, Inc. Bern stated that his personally owned car should be part of the business, The car has a Fair Market Value of $25,000 Bern owes $8,000 to the IRS for his personal taxes from last year. He is on an installment agreement and is paying $450 a month to extinguish this liability

Question 1 How much in expenses are reported on the Income Statement? Group of answer choices A) $5110 B) $9890 C) $6,000

questions #2 How much in Dividends are paid to shareholders? A)3052 B)4360 C) 5110

question #3 What is the Change in Retained Earnings?

$5110

$750

4360

Answer 1

You can trust me Tax Financial Solutions Inc
Income Statement
For Month Ended 31 march 2019
Revenue:
Consulting fees		$ 15,000
Expenses:
Courier expense	$ 1,000
Rent	$ 2,550
Salaries expense	$ 5,000
Telephone Expense	$     660
Advirtising Expnse	$     680
Total Expenses		$    9,890
Net Income		$    5,110

You can trust me Tax Financial Solutions Inc
Balancesheet
March 31,2019
Assets		Liabilities
Cash	$ 10,000	Accounts Payable	$    3,500
Accounts Recievable	$    6,000
Supplies	$    4,250	Common stock	$ 80,000
Land	$ 50,000	Retained earnings	$        750
Office Equipment	$ 14,000
Total Assets	$ 84,250	Total Liability & Owner's Equity	$ 84,250

Statement of Retained Earnings
Retained earnings at Beginning	0
Add : Net Income Earned	5110
Sub Total	5110
Less: Dividends declared in 2019	4360
Retained earnings at the end	750

Answer 1

Option B 9890 is the Expense reported

Answer 2

Option B 4360 is the cash dividend paid to the share holders.

Answer 3

750 is the changes in retained earnings

--------------------------------------------------------------------------------------------------------------------------------------------------------

Note: If you are in need of any further clarification, Press the like button and Mention it in the Comment Box. Thank You