Presented here are the accounts of Gate City Answering Service Corporation for the year ended December 31,
Question:
Requirements
1. Prepare Gate City Answering Service Corporations income statement.
2. Prepare the statement of retained earnings.
3. Prepare the balance sheet.
4. Answer these questions about the company:
a. Was the result of operations for the year a profit or a loss? How much?
b. How much in total economic resources does the company have as it moves into the new year?
c. How much does the company owe to creditors?
d. What is the dollar amount of the stockholders equity in the business at the end of theyear?
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
$ 8,000 Common stock 32,000 Accounts payable 2,600 Accounts reccivable 30,000 Advertising expense 13,000 Building $ 28,000 Land Note payable 11,000 Property tax expense 1,000 Dividends 15,000 Rent expense 145,200 Salary cxpense Salary payable 3,000 65,000 Cash 1,300 Equipment 192,000 Insurance expense 10,000 Interest expense 16,000 Service revenuc 2,500 Supplics Retained carnings, 12/31/2011 7,000 54,000
Step by Step Answer:
Req 1 Gate City Answering Service Corporation Income Statement Year Ended December 31 2012 Revenue S...View the full answer
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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