Use the Robin Sporting Goods Company data in Short Exercise 3-14 to make the company’s closing entries at July 31, 2018. Then set up a T-account for Retained Earnings and post to that account. Compare Retained Earnings’ ending balance to the amount reported on Robin’s statement of retained earnings and balance sheet. What do you find?

Data from Exercise 3-14

Suppose Robin Sporting Goods Company reported the following data at July 31, 2018, with amounts in thousands:

Use these data to prepare Robin Sporting Goods Company’s single-step income statement for the year ended July 31, 2018; statement of retained earnings for the year ended July 31, 2018; and classified balance sheet at July 31, 2018. Use the report format for the balance sheet. Draw arrows linking the three statements.

Transcribed Image Text:

Retained earnings, July 31, 2017 . Accounts receivable... Net revenues Total current liabilities.. All other expenses Other current assets.... Cost of goods sold. . Cash. . Property and equipment, net .. Common stock. . Inventories . Long-term liabilities $ 31,500 $136,800 34,000 191,000 80,000 29,000 5,000 30,000 50,000 19,400 26,000 36,000 11,700 ......... Other assets.. .......... Dividends..