Question

Barrett, Inc. restores antique automobiles. The common shares and retained earnings balances of the corporation were $32,000 and $28,500 respectively at December 31, 2012. During 2013, the corporation paid $35,000 in dividends to its shareholders. At December 31, 2013, the business’s accounting records show these balances:
Accounts Receivable $5,000
Note Payable 16,000
Retained Earnings ?
Salary Expense 16,000
Equipment 70,000
Insurance Expense 9,000
Cash $10,000
Accounts Payable 2,000
Advertising Expense 3,500
Service Revenue 70,000
Common Shares 32,000
Requirement
Prepare the following financial statements for Barrett, Inc.:
a. Income statement for the year ended December 31, 2013
b. Statement of changes in equity for the year ended December 31, 2013
c. Statement of financial position at December 31, 2013


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  • CreatedJuly 08, 2015
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