1. The following data are available for Schubert Products Inc. as of December 31, 2012.

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,500

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . 24,000

Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . . . 42,000

Accounts receivable . . . . . . . . . . . . . . . . . . . . . 20,000

Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,500

Supplies . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 2,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . ?

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000

Required:

a. Prepare a balance sheet for Schubert Products Inc.

b. Determine the amount of retained earnings at December 31, 2012.

c. Interpretive Question: In what way is a balance sheet a depiction of the basic accounting equation?

1. The following information is taken from the records of Wadley’s Car Wash for the year ended

December 31, 2012.

Income taxes . . . . . . . . ... . . . . $ 45,000

Service revenues. . . . . . ... . . . . 210,000

Rent expense . . . . . ...... . ... . . . . . 6,000

Salaries expense. . . . . . . . . ..... . 41,000

Required:

Prepare an income statement for Wadley’s Car Wash for the year ended December 31, 2012.

(Assume that 3,000 shares of stock are outstanding.)

Answer rating: 100% (QA)

1 a b Since total assets must equal to total ... View the full answer