Shirley Baum manages the Comer Shop. She has come to you for help in preparing an...

 

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Shirley Baum manages the Comer Shop. She has come to you for help in preparing an income statement and a balance sheet for the year ended December 31, 2020. Several amounts, determined as of December 31, 2020, are presented below. $10,000 were paid as dividends this year. Capital stock Retained earnings (12/31/19) Advertising expense Cash Rent expense Building (net) Interest expense Cost of goods sold $40,000 $12,400 $2,000 $17,000 $2,400 $100,000 $700 $12,000 Mortgage Payable Accounts payable Land Supplies Salary expense Revenues Other expenses Accounts receivable Note Payable $72,000 $6,000 $24,000 $2,000 $8,000 $42,000 $1,300 $3,000 $10,000 1. Prepare an income statement for the year ended December 31, 2020. 2. Determine the amount of retained earnings at December 31, 2020. 3. Prepare a classified (based on liquidity) balance sheet as of December 31, 2020. Shirley Baum manages the Comer Shop. She has come to you for help in preparing an income statement and a balance sheet for the year ended December 31, 2020. Several amounts, determined as of December 31, 2020, are presented below. $10,000 were paid as dividends this year. Capital stock Retained earnings (12/31/19) Advertising expense Cash Rent expense Building (net) Interest expense Cost of goods sold $40,000 $12,400 $2,000 $17,000 $2,400 $100,000 $700 $12,000 Mortgage Payable Accounts payable Land Supplies Salary expense Revenues Other expenses Accounts receivable Note Payable $72,000 $6,000 $24,000 $2,000 $8,000 $42,000 $1,300 $3,000 $10,000 1. Prepare an income statement for the year ended December 31, 2020. 2. Determine the amount of retained earnings at December 31, 2020. 3. Prepare a classified (based on liquidity) balance sheet as of December 31, 2020.

Answer rating: 100% (QA)

Answer Income Statement For the year ended December 31 2020 Revenues 42000 Less Cost of goods sold 1... View the full answer