Error 401 https://newconnect.mheducatio Help Save& Exit Submit As of December 31

Question

Error 401 https://newconnect.mheducatio Help Save& Exit Submit As of December 31, Year 1, Moss Company had total cash of $152.000, notes payable of $85,200, and common stock of $52,000. During Year 2, Moss earned $32,000 of cash revenue, paid $18,000 for cash expenses, and paid a $2.600 cash dividend to the stockholders. Requirec a. Determine the amount of retained earnings as of December 31, Year 1 Retained earnings and dividend events revenue, expense. b. & c. Create an accou nting equation and record the beginning account balances. under the appropriate elements of the accounting equation. (Enter any decreases to account balances with a minus sign) MoSS COMPANY t nf Year 2 Transactions on the Accounting Equation

Explanation / Answer

Answer a Calculation as of Dec.31,2001 retained earnings balance Cash $152,000.00 Less : Notes Payable $85,200.00 Less : Common stock $52,000.00 Retained Earnings balance as of Dec.31,2001 $14,800.00 Answer b & c Accounting equation is as under, Retained earning balance as of Dec.31,2002 = Retained Earnings balance as of Dec.31,2001 + Revenue for 2002 - Expenses for 2002 - Dividend paid for 2002 Retained earning balance as of Dec.31,2002 = $14800 + $32000 - $18000 - $2600 = $26,200

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