Flex Motors shows the following account balances on March 31, 2010. Cash ..............................................................$ 16,450 Accounts payable ...............................................8,230
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Cash ..............................................................$ 16,450
Accounts payable ...............................................8,230
Unearned royalty fees ..........................................5,000
Selling expenses ................................................. 45,000
Dividends declared .............................................3,500
Interest payable ...................................................6,000
Administrative expenses ...................................... 25,000
Accumulated depreciation-Buildings ..................... 56,000
Cost of goods sold ............................................. 135,000
Depreciation expense........................................... 14,000
Common shares ................................................250,000
Retained earnings ............................................. 55,720
Motor revenues ............................................... 325,000
Buildings ...................................................... 450,000
Accounts receivable ........................................ 17,000
Required:
(a) Prepare an income statement for the month ending March 31, 2010. Ignore income taxes.
(b) Prepare a statement of retained earnings for the month ending March 31, 2010.
(c) Prepare a balance sheet as at March 31, 2010. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley
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