On December 31, 2017, the accounts in the ledger of Monroe Entertainment Co. are
ID: 2592014 • Letter: O
Question
On December 31, 2017, the accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances. At the beginning of the year, retained earning balance is $3,000.
Cash
$ 16,000
Accounts Receivable
6,000
Equipment
12,000
Accumulated Depreciation- Equipment
(Credit Balance)
(6,000)
Accounts Payable
2,000
Long-term Note Payable
10,000
Other Assets
2,000
Common Stock
1,000
Sales
50,000
Cost of Goods sold
21,000
Selling expense
3,000
Administration Expense
6,000
Depreciation Expense (Office Equipment)
5,000
Dividends
$ 1,000
1. Generate the Multi-Step Income Statement below (10 points)
Monroe Entertainment Company
Income Statement
(Fill in the Date or Period)
Sales
$
Less:
Gross Profit
Less:
Net Income
$
Generate Retained Earnings Statement based upon the above information and net income you calculated. (10 points, 2 points each blank).
Monroe Entertainment Company
Retained Earnings Statement
31. 12. 2017
Retained Earnings at beginning of the year
$___3,000 __ ________
Net Income
_____________________
Less: Dividends
_____________________
Net Increase/(Decrease) in the year
______________________
Retained Earnings at end of the year
$_____________________
Please generate Balance Sheet as of December 31, 2017 (15 points).
Monroe Entertainment Company
Balance Sheet
Dec 31, 2017
Assets
Liabilities
$
$
Total Liabilities
$
Shareholders’ Equity
$
Total Shareholders’ Equity
$
Total Assets
$
Total Liabilities & Shareholders’ Equity
$
Cash
$ 16,000
Accounts Receivable
6,000
Equipment
12,000
Accumulated Depreciation- Equipment
(Credit Balance)
(6,000)
Accounts Payable
2,000
Long-term Note Payable
10,000
Other Assets
2,000
Common Stock
1,000
Sales
50,000
Cost of Goods sold
21,000
Selling expense
3,000
Administration Expense
6,000
Depreciation Expense (Office Equipment)
5,000
Dividends
$ 1,000
Explanation / Answer
1) Income Statement Sales 50,000 less:Cost of goods sold 21,000 Gross Profit 29,000 less:.selling expense 3,000 Administration expense 6,000 Depreciation expense 5,000 Net income 15,000 2) Retained earnings at beginning of the year 3,000 net income 15,000 less:Dividends 1,000 net increase/(decrease)in the year 14,000 Retained earnings at end of year 17,000 3) Balance Sheet Assets liabilities Current assets Current liabilities cash 16,000 Accounts payable 2,000 account receivable 6,000 long term liabilities total current assets 22,000 long term note payable 10,000 total liabilities 12,000 fixed assets Equipment 12000 Shareholder's Equity Accumulated dep 6000 6,000 commo stock 1,000 retained earnings 17,000 other assets 2,000 total shareholders Equity 18,000 total assets 30,000 total liabilities &shareholders 30,000 Equity
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