Little Lads and Ladies Ltd. sells children's clothing. At the end of December 2011, it had the following adjusted account balances, which are listed in random order:
Cash……………………………………………..$ 3,000
Wages payable………………………………….. 500
Supplies used…………………………………… 4,200
Equipment……………………………………… 23,000
Wages expense…………………………………. 25,000
Prepaid rent…………………………………….. 400
Cost of goods sold……………………………… 32,000
Sales…………………………………………….. 66,450
Accounts receivable…………………………….. 10,000
Rent expense……………………………………. 4,800
Bank loan (due in two years)…………………… 3,800
Advertising expense…………………………….. 750
Accounts payable……………………………….. 5,000
Electricity……………………………………….. 600
Dividends declared……………………………... 1,200
Depreciation…………………………………….. 500
Share capital…………………………………….. 20,000
Telephone expense……………………………… 200
Interest charged on bank loan…………………... 300
Accumulated depreciation……………………… 1,500
Retained earnings………………………………. 17,600
Inventory……………………………………….. 8,000
Other expenses………………………………….. 400
Supplies on hand………………………………… 800
Interest payable………………………………….. 300
Required:
a. Identify the statement of earnings accounts and calculate the net earnings (or loss) for the year.
b. Determine the amount of retained earnings at the end of 2011.
c. Prepare a classified statement of financial position as of December 31, 2011.